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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. Please continue reading to learn more.
What is the Profit Forecast Report?
The Profit Forecast Report gives you insights into your future profitability based on Active and Proposed projects across your firm.
The goal of this report is to provide further visibility into your firm's forecasted financial health and help you grow your profit. For the report to be accurate, you'll need to have the following completed:
At least one project with a budget will need to be created.
All compensation details must be completed in the Directory for the entire team.
The Overhead Multiplier must be completed in Settings > Organization > Overhead costs > Edit.
Navigating to the Profit Forecast Report
To access the Profit Forecast Report, navigate to Analytics in the menu bar on the left-hand side of the screen. From there click on Profit Forecast below Profit.
Different Parts of the Profit Forecast Report
Date Range and Filters
At the top of the screen, use the date range picker and Project Status filter to find the data you're looking for.
Select the Date Range and Project Statuses to include in the report.
The Project Status filter does not take Phase status into consideration.
The Date Range will default to show the next 6 Months but other timeframe selections can be made.
The date range filter remembers the last selected dates.
Past-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.
Projected Operating Profit - This number will show the total projected profit or loss for the selected date range.
Projected Revenue - This number will show the total dollar amount of planned fixed, hourly, and consultant budgets from the projects' planners.
Projected Costs - This number will show the total estimated costs based on wage costs, consultant costs, and overhead costs.
💡 In the How the Math Works section below, we'll show you how we calculate these numbers.
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 (Fixed Fees, Hourly Fees, Consultant Fees, Other) and the Costs (Wage Costs, Consultant Costs, Other Costs, Overhead Costs) compared to your Net Profit. Hovering over the bar graph for the month will show a pop-up with more details.
Table Charts
Below the bar graph also shows the totals within a table based on your date range.
How the Math Works
Projected Revenue - is calculated based on the Firm Services and Consultant Services entered in the Project Planner.
Revenue is evenly spread across the number of days in a phase. For example:
If a $2,000 phase runs from April 1 to May 1 (a 30-day period), $1,000 will be recognized in April and $1,000 in May.
If a phase spans two months with an even 15/15-day split, then half the revenue will be allocated to each month.
This ensures that monthly revenue is proportional to how many days of a phase fall within that month.
Projected Costs - include Planned Wages multiplied by the Overhead Multiplier, plus Consultant Costs.
Costs use the same daily spreading method as revenue:
If a consultant has $1,000 allocated to a phase that spans 15 days in April and 15 in May, the report will show $500 in each month.
Planned Wages come from the compensation details you’ve entered:
For salaried employees, compensation is evenly distributed by day.
For hourly employees, planned wage is based on the number of hours expected per week (assuming a 5-day workweek), and then distributed daily.
Consultant Costs come directly from the Consultant Fees page in the budget. This amount reflects the raw budgeted cost and does not include any markup.
Projected Operating Profit - is calculated as Projected Revenue – Projected Costs
Projected Margin - is calculated as Projected Operating Profit ÷ Projected Revenue
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. In order 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 Forecast 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.