This tutorial will take you through viewing the profitability of a job or get an overview of profitability for multiple jobs.
There are two variations of this report:
Job Recon Individual: A recon report for an individual job.
WIP Report: Also known as the Work In Progress Report. A recon report for a group of jobs.
HOW TO ACCESS THESE REPORTS:
Analytics>Reporting> Finance> Job WIP Recon. Select all new, or individual
You also get to the recon directly from the job dashboard report link.
WHAT SETUP IS NEEDED FOR THIS REPORT TO WORK EFFECTIVELY?
Step 1: Setting up user billing rates and item types as well as utilizing certain reports.
Set up internal employee cost (This is the hourly cost of each resource to the company as well as the default task billing rate).
Manage Users > Edit.
Set the employee's hourly cost. Please note, the hourly user cost can be marked up to take into account general office costs. So it could be salary per hour plus 20% for a fixed amount for instance.
Set the employee's default billing rate (Employee Markup - billable to the client).
Billing rates are set up by adding Item types
Create a New Cost Estimate
You have the ability to create tasks directly from the CE.
If external suppliers are used, you can generate Purchase Order.
Once the job is complete create a Tax Invoice.
Now that you have your data set up correctly you can use the WIP Report or the Recon Report - Individual.
See the example of the WIP Report below - Choose to include jobs without accounts if needed
HOW TO USE THE WIP REPORT:
A basic example would be if you would like to see what the remaining budget is on your jobs for a specific month. Here is what you'll do:
Add the monthly amount/budget to your jobs on the job bag.
Ensure that you track time on your all your tasks for your jobs/projects.
Now run the WIP report with the dates filtered on the specific month you would like to view.
The WIP report will then show you the Remaining Monthly Budget using the Monthly Amounts/Budget and subtracting the Actual Billable Amount for the tasks that have time tracked during the date range specified. In other words, on all your jobs you’ll be able to see whether you’ve gone over budget because of too much time spent on tasks or whether you’re still under budget.
Please note: All accounts with draft or cancelled status are excluded from this report.
2. JOB RECON - INDIVIDUAL
See an example of the Project Recon - Individual:
HOW TO USE THE JOB RECON - INDIVIDUAL:
Choose your project from the dropdown menu.
Click Include "Employee Costs".
Click the magnifying glass icon to search for results.
Expand the gray bars to view the results:
Expanding Revenue will display all Cost Estimates and Tax Invoices.
Expanding Costs will display all Purchase Orders / Supplier Invoices.
Expanding Expenses will display any Expenses such as Travel / Food / External Printing that occurred on this job.
Expanding Task Time will give you a breakdown of each Task including User Costs and Task Billing rates along with Time Breakdowns.
The results displayed on the right side of the page (see below) gives you a breakdown of the estimated and actual profitability for the job.
HOW TO MAINTAIN THESE RECON REPORTS
Host a weekly meeting with your team and review the following profitability data on the reports:
Does the invoiced amount match the cost estimate?
Were the external expenses more than budgeted for?
Did people go over on time estimated?
Were the resources used on the job priced correctly?