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As of May 2024, the Profit Report only includes historical information. Forecasted information can now be found in the Profit Forecast Report.

What is the Profit Report?

The Profit Report provides insights into historical profitability for all projects across your firm. For future profitability, please refer to the Profit Forecast Report.

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, the following will need to be completed:

All compensation details must be completed in the Directory for the entire team.
Invoices for all projects should be created in Monograph.
If QuickBooks Online is integrated, then the cost import must be set up and completed.
If QuickBooks Online is not integrated, then the Overhead Multiplier must be completed in Settings > Organization > Overhead Multiplier.

If the QuickBooks Online cost import was completed prior to May 9, please complete the import again to ensure that all non-operating costs have been captured.

📚 If you haven't integrated QuickBooks Online, you can learn more here. Additionally, check our QBO FAQs for frequently asked questions.

Navigating to the Profit Report

To access the Profit Report, click Analytics in the menu bar on the left-hand side of the screen. From there click on Profit.

Different Parts of the Profit Report

Date Range and Filters

At the top of the screen, use the date range picker to find the data you're looking for.

Select the Date Range you would like to include in your report. The date range filter remembers the last selected dates.
The Date Range will default to show the last 6 Months, but other timeframe selections can be made.
Future date selections cannot be made.

Summary Statistics

The large numbers at the top of the page indicate important summary statistics based on the date range that is selected.

Net Profit - This number will show the total net profit or loss for the selected date range.
Revenue - This number will show the total dollar amount of issued invoices based on the selected date range.
Costs - This number will show the total estimated costs based on the selected date range and filters.

💡 In the Where Does This Information Come From? section below, we'll show you how we calculate these numbers. Please note that different data is used for QuickBooks Online vs. non-QuickBooks Online users.

Bar Graphs

Underneath the Summary Statistics, bar graphs compare the historical monthly Costs, Revenue, and Net Profit.

This also provides a visual to help break down what makes up the Revenue and the Costs compared to your Net Profit. Hovering over the bar graph for the month will show a pop-up with more details.

If the date range goes back to a past month where any of the required data isn't available, the bars will be hidden with a warning icon.

QuickBooks Online users: If there is any consultant revenue from issued invoices, but there are no consultant project costs, a banner will appear prompting you to review your costs imported from QuickBooks Online.

Non-QuickBooks Online users: If there is any consultant revenue from issued invoices, but there are no bills, a banner will appear prompting you to review your costs imported from QuickBooks Online.

Table Charts

Below the bar graph also shows the totals within a table based on your date range.

If the date range goes back to a past month where certain data isn't available, the table data will be hidden and a warning icon will appear.

Where Does This Information Come From?

Depending on whether or not QuickBooks Online is enabled, the math and calculations used for the Profit Report will vary for QBO vs non-QBO users. For QBO-enabled users, compensation, invoices, and the QBO Cost Import will need to all be up to date. For users who do not have QBO enabled, compensation, invoices, and the overhead multiplier will all need to be up to date.

🚨 Without all of this information being completed, you will not be able to use the Profit Report.

Here is how the math works:

QuickBooks Online Users

*To note: Profit in Monograph will never match what is shown in QuickBooks Online exactly.

Revenue - comes from all non-draft invoices (based on the invoices' Issue date) and is broken down into Fixed, Hourly, Consultants, and "Other" line items.
- "Other" line items consist of other items, expenses, and taxes. Retainer line items are not included.
Costs - comes from Compensation and Timesheets entered in Monograph plus Labor-related costs and Project costs (expenses, consultants, etc) imported from QBO and is broken down into Direct Costs, Operating Costs, and Non-Operating Costs.
- See below for a detailed breakdown of how Costs are calculated.
Net Profit - comes from revenue less the sum of costs.
Margin - comes from net income divided by revenue.

Cost Calculations

Direct Costs

Direct Costs are a combination of compensation costs based on Monograph data and Labor-related costs, and Project costs (expenses, consultants, etc.) that are imported from QBO. The calculation details for each are as follows:

Compensation Costs refer to the actual money paid for someone's salary or hourly work. For each person who's logged time to the phase, the following information is used:

Salary employees - is found by using a relative allocation of the salary.
1. For example, if someone works 30 hours in a month on projects and 70 hours on overhead, then 30% of their wages go to Direct Costs and 70% goes to Operating Costs (below).
  1. If there are zero logged hours, all of the hours will go to Operating Costs.
Hourly employees - is found by multiplying the time logged on project work within the month by their hourly wage.

Labor-Related Costs refer to costs that are tied directly to labor, such as payroll taxes that are shared amongst employees. To find this information, we look at the following:

First, find out how much money has flowed out of your firm for compensation for the last year up to the Monday of the week in consideration.
1. For example: An employee earning $365,000 annually for the last 3 years, the amount that flowed out for that person in the last year was $365,000.
2. Repeat this for all salary and hourly employees that have Compensation entered into Monograph. We will refer to this as total compensation for last year.
Next, find out how much money has flowed out for all Labor-Related items, such as payroll taxes. This comes from the QBO Cost Import and includes everything in the "Labor-Related" cost category.
1. Look at all of the costs for the last year up to the Monday of the week in consideration, and then sum them up. We will refer to this as the total Labor-Related costs for last year.
Finally, divide the total labor-related costs for last year by the total compensation for last year to get the Labor-Related Ratio.
1. For example: $100,000 in Labor-Related costs for the year and $500,000 in Compensation equals a ratio of 0.20.
  1. 100,000 / 500,000 = 0.20

Once the Cost Calculations and Labor-Related Ratio have are found, we can find the total costs for a person within a phase for the week.

For example: if a team member cost $600,000 in a week on phase X in compensation and has a Labor-Related Ratio of 0.20, their total costs on that phase for the week were $720,000.
1. 600,000 * 0.20 = 120,000
2. 600,000 + 120,000 = 720,000

💡 Monograph's Labor Related costs strategy will essentially take costs that are closely tied to labor costs (such as Payroll Taxes) and spread them out relative to those labor costs.

For example, a firm may pay its Payroll Tax bill every three months. This would result in every third month looking very unprofitable from a QBO/Accounting perspective. However, within Monograph,, we spread those payroll taxes out over each month (since that cost is tied to labor costs each month) to show a more accurate sense of working profitability.

Project Costs refer to any project-specific costs that are imported from QBO (both consultant and not consultant). These costs are based on the transaction date.

Operating Costs

Operating costs are made of up the following information:

All costs that are marked as "Operating Costs" that imported from QBO using the Cost Import. These costs are based on the transaction date.
Operating Compensation for work done on Overhead.
1. This is calculated the same way as Direct Costs except using Overhead Hours instead of Project Hours.
  1. See above for more details on Direct Costs calculations.
Operating Labor-related costs related to the Compensation paid for Overtime work.
1. To find this, use the weekly Labor-Related ratio that was calculated and multiply it by the Operating Compensation costs.

Non-operating Costs

Non-operating costs are the sum of any costs imported from QBO that are marked as "non-operating". These costs are based on the transaction date.

Non-QuickBooks Online Users

Revenue - comes from all non-draft invoices (based on the invoices' Issue date) and is broken down into Fixed, Hourly, Consultants, and "Other" line items.
- "Other" line items consist of other items, expenses, and taxes. Retainer line items are not included.
Estimated Costs - comes from compensation costs entered in Monograph plus Project/Overhead Expenses and Bills.
- See below for a detailed breakdown of how Costs are calculated.
Estimated Operating Profit - comes from revenue less the sum of estimated costs.
Margin - comes from net income divided by revenue.

Cost Calculations

Wage Costs

Compensation Costs refer to the actual money paid for someone's salary or hourly work. For each person who's logged time to the phase, the following information is used:

Salary employees - sum all money paid to salaries via Monograph's Compensation records.
- It doesn't matter if the work completed was project work/overhead work, or billable/non-billable work.
Hourly employees - Hourly wage times the total hours logged.
- It doesn't matter if the work completed was project work/overhead work, or billable/non-billable work.

Consultant Costs

Consultant Costs come from the total Bills. The "Issue Date" is used for date assignment and the "Bill amount" is used for the total amount.

This includes Bills of all statuses - it doesn't matter if the bill has been paid or not.

Other Costs

Other Costs consist of any expenses entered within Monograph, based on the date of the expense. This includes reimbursable and billable expenses and it doesn't matter if they have been paid or not.

Overhead Costs

Overhead Costs are found by multiplying the Overhead Multiplied by the Compensation Costs.

How will team members without compensation impact the Profit Report?

Team members without compensation saved to their Monograph profile will impact the Profit Report as well as the Profit Forecast Report. Both of the reports require that all compensation information is added to be used.

In these cases, the work around would be to set their compensation to $0.01. This will remove the warning that is seen when attempting to run the report but without truly impacting your reports.

Examples of this scenario:

Bookkeeper with their own Monograph login to be able to run reports, issue invoices and access team member timesheets.
Consultants who will need to track time to specific projects but aren't employees of the firm.

Permission Setting to Access the Profit Report

Admins will have access to this report. To allow other users to have access, they must have 'View Financial Reports' enabled.

If you do not see the Reports option, it means your current access level does not permit you to see Financial Reports. Please speak to your Admin for assistance.

💡 The Profit report allows date selection starting from two years before the subscription date. For example, if your subscription began on May 1, 2015, dates prior to May 1, 2013 will not be available.