Profit Drivers Report

The Profit Drivers Report gives you insight into what brings your firm the most profits. The report can be customized to show you costs vs revenue for specific categories, people, clients, and phases.

For the report to be accurate, you'll need to enter compensation details for your team and overhead cost.


💡 Pro-Tip: To get the most out of the Profit Drivers Report, you'll want to add Categories to your projects by going to each project's General Settings tab.


How to Use the Profit Drivers Report

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

First select how you'd like to "Group By" to start the analysis, choose:

  • Category (default) - groups projects by category. E.g. compares the profitability of "commercial" projects to "residential"

  • People - groups projects by people who were assigned to them. E.g. compares the profitability of all projects that Jennifer was in vs those that Tyrone was in.

  • Client - groups projects by client. E.g. compares the profitability of all projects for Client A vs projects for Client B. **Note that this will also include clients added via Quickbooks Online.

  • Phase - groups profit by phase instead of project. E.g. compares the profitability of the CD phase in all projects to the profitability of the CA phase.

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

  • Category (multi-select) - only considers projects in the selected categories.

  • People (multi-select) - only includes projects on which the selected people had roles.

  • Client (multi-select) - only include the projects associated with the selected clients.

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

  • Phases (multi-select) - only includes the revenue and costs associated with certain phases.

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

The report will show information based on all-time data, using the oldest project and employee information you've entered in the app.

After selecting your Grouping and Filtering options, you'll be left with a bar graph and table comparing the costs and revenue; hovering over the bars will provide more detail with costs appearing in red and revenue in blue.

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

You can also see a more granular view of what projects make up each of the totals in your table chart by clicking on a group to expand it.


How We Calculate Profit Drivers

The Profit Drivers 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. Without this information being complete, your report will be inaccurate.

Here is how the math works:

  • Planned Cost - Calculated by determining the hourly pay rate for each employee based on their compensation. That pay rate is then multiplied by the Overhead Multiplier to get the hourly cost for that employee. The employee hourly cost is multiplied by the number of hours worked in the group to get the cost for each employee in the selected group.

  • Planned Revenue - Sums the Project Fees based on the "Group by" selection. When the report is grouped by "Phase", it then sums the phase fee (phase allocation % * Project Fee) across all projects instead.

  • Planned Profit/Loss is the difference between Planned Revenue and Planned Costs. If your Planned Profit is instead a Loss, the dollar amount will appear in parenthesis.

  • Planned Margin is calculated by dividing the Planned Profit by the Planned Revenue and multiplying the result by 100.


🚨 Projects can be in more than one category, so when you sum across categories (e.g, revenue), some revenue can be double-counted if your project is associated with multiple categories.


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