Project-based businesses, such as construction companies, consulting firms, and creative agencies, need to track how profitable each job or project is to ensure the success of their business. QuickBooks Online offers a powerful tool—Project Profitability Summary Report—which helps project-based businesses track and enhance their profitability.
What is the Project Profitability Summary Report?
The Project Profitability Summary Report provides a concise summary of the financial performance of individual projects undertaken by your business. This report offers detailed insights into the revenue, expenses, and overall profitability of each project, making it an invaluable tool for project-focused businesses.
Sample project profitability summary report in QuickBooks Online
When is the Project Profitability Summary Report Used?
The Project Profitability Summary Report is typically used in the following scenarios:
- Project Evaluation: Businesses use this report to assess the financial health of their projects. It helps in identifying which projects are profitable and which ones may be causing financial strain.
- Project Comparison: Businesses can compare the financial performance of multiple projects side by side. This facilitates decision-making about resource allocation, investment priorities, and the pursuit of future projects.
- Client Billing: The report serves as a basis for client invoicing, ensuring accurate billing for the services or products delivered within each project.
- Budget Management: By comparing actual project expenses against budgets, businesses can control costs and make adjustments to stay within budgetary constraints.
- Decision Support: Executives, project managers, and financial professionals use this report to make data-driven decisions. It aids in evaluating the viability of ongoing projects and shaping future strategies.
The Importance of the Project Profitability Summary Report
- Profitability Assessment: It allows businesses to assess the profitability of each project, helping them identify lucrative ventures and those in need of improvement or cost control.
- Resource Allocation: The report aids in allocating resources more effectively, ensuring that profitable projects receive adequate attention and resources.
- Client Relationships: Accurate project billing and transparency enhance client relationships, fostering trust and loyalty.
- Cost Management: By tracking project expenses closely, businesses can control costs and improve financial efficiency.
- Strategic Decision-Making: Data from the report informs strategic decisions about pursuing new projects, diversifying services, or discontinuing unprofitable ventures.
- Continuous Improvement: Regular analysis of project profitability leads to continuous improvement in project management processes and financial outcomes.
Learn more about project profitability tracking in QuickBooks Online.
How to Run a Project Profitability Summary Report in QuickBooks
Click on Reports and locate the Project Profitability Summary Report. You can use the report search bar for quicker access.
Running a project profitability summary report in QuickBooks Online
The QuickBooks Online Project Profitability Summary Report is a critical tool for businesses involved in project-based operations. It empowers you to evaluate the financial health of each project you undertake, make informed decisions, and drive profitability.