Features Below Available To: ✅ Grow Plan ❌ Track Plan ❌ Free Plan
This report is currently only available for Monograph users who have integrated with Quickbooks Online.
What is the Project Profit Report?
The Project Profit Report gathers cost information from QBO to support Monograph's project cost information. This feature gives firms detailed insight into project profitability by phase.
Admins or users with permissions that include “can view all projects”, “can edit all projects” OR “can edit assigned projects” AND “view financial reports” permission can access the Project Profit Report.
After connecting to Quickbooks Online, costs can be imported from QBO into Monograph to provide more visibility into profit at the project level.
For the report to be accurate you'll need to have the following completed:
All compensation details must be completed in the Directory for the entire team.
The service fee must be fully allocated across phase budgets.
If an amount is not distributed in phases, then it will not be reflected in the report.
The Cost Import from QBO should be up to date to ensure all costs are captured.
Navigating to the Profit Report
To access the Project Profit Report, enter the desired project and then navigate to Profit in the menu bar on the left-hand side of the screen.
If imported costs have not been assigned to a project, you can review them by going to Settings > QuickBooks > Import costs from QuickBooks. Click View imported costs to begin the review process.
Different Parts of the Project Profit Report
As your costs and revenue increase, their respective bars in the graph will adjust in real-time. You can also hover over each bar to see costs and revenue in dollar amounts, broken out by each phase.
Where does this information come from?
Revenue and costs come from different calculations and sources depending on the row that is being calculated.
Phase Rows
Phase Rows
Revenue
Comes from any non-draft line items in invoices.
This excludes any retainers and/or taxes.
Cost
Comes from a combination of Compensation Costs in the Team Directory, as well as any Labor-related and project-related costs imported from QBO.
See below for a detailed breakdown of how Costs are calculated.
Cost Calculations
Cost Calculations
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, and for each week that person logged time to the phase, the following information is used:
If the person was paid a SALARY as of the Monday of that week, we look at their weekly total compensation costs and their phase ratio for the given phase in the given week:
Weekly total compensation costs refer to how much compensation each person was paid during that week.
To find this, divide the person's annual salary by the number of days in a year (365) and then multiply by the days in the week (7).
If a team member's annual salary is $365,000, then the weekly total compensation cost for that person is $7,000
365,000 / 365 = 1,0001,000 * 7 = 7,000
Phase ratio looks at all of the hours logged by a person to a given project in a given week compared to the total hours logged by that person in the same week.
The numerator equals all hours logged by a person to the given week.
The denominator equals all of the hours that person logged during the same week. This includes all phases, overhead, PTO, and holiday hours.
Numerator / Denominator = Phase ratio
If a team member logs 60 hours to Phase A and 10 hours to Phase B during the week, then their phase ratio for Phase A for the week is 0.85.
60 + 10 = 7060 / 70 = 0.85
Once both numbers are found, multiply the phase ratio by the weekly total compensation costs and this will give you the person's cost for the phase for the week.
Based on the examples above..
If the team member's compensation cost for the week is $7,000 and their phase ratio for Phase A in the week is 0.85, then their cost for Phase A for that week is $5,950.
7,000 * 0.85 = 5,950
If the person was paid HOURLY as of the Monday of that week, we take their hourly wage straight from their Compensation in Monograph and multiply it by the number of hours they worked on that phase in the week.
If a team member with a compensation rate of $50/hour works 20 hours on Phase A, then their compensation cost for Phase A for the week is $1,000.
50 * 20 = $1,000
The calculations above are repeated for each week and for each person who has logged time to the phase.
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.
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.
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.
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.
For example: $100,000 in Labor-Related costs for the year and $500,000 in Compensation equals a ratio of 0.20.
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 $6,000 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 was $7,200.
6,000 * 0.20 = 1,2006,000 + 1,200 = 7,200
Gross Profit
Equals total revenue minus costs.
Consultant Rows
Consultant Rows
Revenue
Comes from any non-draft invoice line items for Consultants.
This includes markups and consultants hidden on invoices.
Cost
Comes from any cost imported from QBO that has been assigned to the “Project cost” cost category and is identified as “consultant cost”, and has been assigned to a project.
Gross Profit
Equals total revenue minus costs.
Expense & Other Item Rows
Expense & Other Item Rows
Revenue
Comes from any non draft line item in Expenses and Other items.
This includes markups.
Costs
Comes from any cost imported from QBO that has been assigned to the “Project cost” cost category and is not identified as “consultant cost”, and has been assigned to a project.
Gross Profit
Equals total revenue minus costs.
To note: Retainers and taxes are not included in any of the revenue or cost calculations outlined above. Convenience fees are not included in revenue calculations, but they are included in cost calculations. They will appear under "Expenses and Other Items" when they are pulled back in from QBO and assigned to the projects.
How is the Project Profit Report different from the Analytics Profit Report?
The Project Profit Report gives detailed insight into project profitability by phase, by importing costs from QBO to account for additional employee wages, contractors, and all other project costs.
The Analytics Profit Report gives you insights into your historical profitability based on all projects across your firm and costs that are imported from QBO. This can also be used to show the profitability based on status, phase fee types, and invoices issued, or invoices paid.
💡 The Project 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.