Planned Profit Report

The Planned Profit Report gives you insights into your profitability based on all of your projects across your firm in a month-by-month view. This can also be used on a more granular level to show the profitability based on Status and Phase Fee Types.

The goal of this report is to provide further visibility into your firm's financial health and help you grow your profit. For the report to be accurate you'll need to enter compensation details for your team and overhead multiplier. If you have questions about your overhead multiplier, please refer to this article.

How to Use the Planned Profit Report

Located under Reports > Planned Profit, this report can only be accessed by those who have Admin level permission.

First, select the Date Range that you'd like to include in your report.

Next, use Filter By to drill further down into your projects:

  • Statuses (multi-select) - only include the projects with the selected statuses.

    • Note: this defaults to include "Active" and Complete" statuses.

  • Fee Type (single select) - review fixed and/or hourly phases in the report.

After selecting your Date Range and Filtering options, you'll be left with a bar graph and table comparing the monthly costs and revenue, and hovering over the bars will provide more detail. Profit will appear as green and Loss will appear as red.

The table chart below the bar graph also shows you the totals based on your grouping and filtering selections.

How We Calculate Planned Profit

The Planned Profit Report is calculated using the project information entered into the Project Planner for each phase, in conjunction with the Compensation information that you add to your team members' profiles, as well as the Organizational Overhead Multiplier that you complete within your Organization's Settings. Without all of this information being completed, your report will be inaccurate.

Here is how the math works:

  • Planned Costs - This is calculated using all your team's compensation and overhead multiplier. For each employee that's "active", we use their salary or hourly wage to determine their pay-per-day. We multiply that by the overhead multiplier to get their cost per day to the firm. Then we take that cost per day and multiply it by the number of days in the month to understand the cost per person per month. We do this for each employee over the selected date range.

    For example, if someone made $50,000 as their annual salary then: $50,000/365 = $136.99 per day. Then we take this amount and multiply by the Overhead Multiplier, 1.5 in this example. $136.99 per day x 1.5 (Overhead Multiplier) = $205.49 cost to the firm per day for this example employee. Then we do that cost per day by the number of days in the month. So, for the month of Ocotber, 31 days, we do $105.49 multiplied by 31 days = $6370.19. And we do this for each employee that is ‘Active’ to understand the overall costs to the firm for each month.

  • Planned Revenue - This comes from the Project Planner. It’s calculated based on the revenue entered into the Project Planners and distributed equally over each phase period. For fixed phases, the revenue comes from the "Phase Budget". For hourly phases, the revenue comes from the "Max Cap".

    For example, if a project had a planned budget of $20,000 and the phase was 2 months long, then for each of those two months the planned revenue is $10,000 for that project ($20,000/ 2 months). Note, the use of the word revenue here, as in money expected to come into the business, not profit. Also please note, this is using the information entered into your project planners so it is all planned, in other words projected.

  • Planned Profit/Loss - This is the difference between planned revenue and costs. If your Planned Profit is a Loss, the dollar amount will appear in parenthesis. In the above example, if we take $10,000 a month and we only have one employee at $50,000/year then their Planned Profit for the month of October would be $3629.81 ($10,000 - $6370.19).

  • Planned Margin - This is calculated by dividing the Planned Profit or Loss by the Planned Revenue and multiplying the result by 100.

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