Fresh Projects let's you consider and compare the finances across all projects to assist in determining which projects are making the company money and which may need further attention.
The Project Profitability can be graphically interpreted as follows:
- Begin by going to Insight in the main menu and selecting Project Profitability in the Profitability section.
- Set any necessary Filters near the top of the screen.
- Further down on the screen, doughnut charts will reflect the financial situation of the relevant projects.
- In the top left corner of the screen will be another doughnut chart. This one, however, represents the average calculated from the individual projects.
- Focusing on a single doughnut chart, it is first and foremost, comprises the Fee in the left hemisphere and the Cost in the right hemisphere.
- The Fee in the left hemisphere is indicated by the grey segment and represents the total agreed upon fee with the client. As you begin invoicing on the project, a new black segment will appear, beginning at 12 o'clock and moving in a counter-clockwise direction over the grey segment. Ideally, once the project is complete, the grey segment should be totally covered by the black segment, indicating that the client has been invoiced for 100% of the fee. The value of the black segment is reflected by the Invoiced amount.
- The Cost in the right hemisphere is indicated by the light blue and navy blue segment and represents the total internal budget set for the project. As time and expenses are captured to the project and then approved, the navy blue segment will appear, beginning at 12 o'clock and moving in a clockwise direction. Ideally, the navy blue segment should always stay within the confines of the light blue segment, indicating that the true project costs are still within the budgeted amount. The value of the navy blue segment is reflected by the Actual Cost amount.
- The segment in the right hemisphere represents the Profit, and is equal to the Fee less the Actual Cost and Cost Remaining. If the Actual Cost exceeds the budgeted cost at any point, the navy blue segment will eat into the green segment, effectively lessening the Profit. If the Actual Cost increases to such a degree that it negates the Profit entirely, the green segment will be replaced by a red segment in the left hemisphere, indicating a Loss.
- The thin green segment in the left hemisphere indicates a Positive Cash Flow and is calculated as the difference between the amount Invoiced and Actual Cost. If, at any point, the Actual Cost exceeds the amount Invoiced, this will be reflected by a thin red segment in the right hemisphere.
- The information shown here can be downloaded in a spreadsheet as a report by clicking on the downward-facing arrow in the top right corner of the screen.
We hope this article was helpful. If you have any questions, please do not hesitate to reach out to us. Our support team is always happy to help!