Are your projects profitable?

The payments come, checks are cashed but the funds come out as fast as they were calculated in the company’s cashier? Furthermore, what about profitability and profit margins? What tools are available to measure your business’s vital financial information?

In a context of frequent movements of money, it is easy to get a profitability illusion when you don’t properly compare the revenues to the costs incurred.

Let’s not confuse revenues and profits

With a bookkeeping of project revenues and expenses, it is much easier to identify profitable projects from those that are delivered at a loss. The ideal tool should offer management indicators to display in real time the budget situation, the project’s profitability and the return indicators calculated using various parameters. In project accounting, it is possible to know at any time the financial results of your projects with a tool that combines financial and project management.

To do this, you should budget all required expenses and hours while applying a safety factor to the quantities – both on expenses and hours.

Regarding the hours, we will take a cost-plus into account, which involves the contributor’s real cost as well as the calculated proportional operating cost of each resource.

No flexibility

The current economic climate leaves no flexibility for companies. It is therefore essential to know all of our projects’ profitability. This helps making an informed decision: does the project bring anything else than an economic value to the company? Will the loss be covered by another project from the same customer?

The information

Knowing the profitability of our projects at any time allows us to make pragmatic and well-founded decisions for the company. Abak 360 allows a seamless project income and expense accounting; thus, the financial results of each project will have no secret for you!

Contact us for more information!

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