[Beta] Profitability report

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Profitability reporting is currently in beta and the beta is at maximum capacity. We plan to release the profitability report publicly after we’ve had time to gather insights from our beta testers and make necessary updates and enhancements.

The profitability report allows your team to visualize revenue, cost, and profit margin in order to track your company’s performance over time. You can access this report from Reports > Profitability. The profitability report is only visible to Administrators. 

How Harvest calculates profitability

Profitability = Revenue - Cost

Profitability for Time & Materials projects

Revenue for Time & Materials projects is defined as the billable amount that results from billable hours multiplied by billable rates.

Cost for Time & Materials projects is defined as (time tracked x cost rates) + expenses. 

Profitability for Fixed Fee projects

Revenue for Fixed Fee projects is determined by the amount invoiced for the project.

Cost for Fixed Fee projects is defined as (time tracked x cost rates) + expenses.

Viewing the company profit report

The top portion of the profitability report includes a chart that visualizes profit at the company level. The timeframe on the report will default to display the current quarter, but you can adjust the view by using the arrows at the top left or selecting a different period from the timeframe dropdown at the top right. 

 

 

The company-level report will display costs and revenue as a chart with a line graph to visualize profit trends over time. You can get a breakdown of a specific timeframe by hovering over the bars in the chart—from there, you’ll see a tooltip that shows specific numbers for revenue, cost, and profit as well as percentages. 

Below the chart, you’ll see a revenue breakdown that shows the split between uninvoiced and invoiced revenue, as well as a cost breakdown for time and expenses. You can also see profit broken down at the company-level absolute profit and the percentage margin. 

Reading the profitability report table 

Below the company profit report is a table with information organized into four tabs: Clients, Projects, Team, and Tasks.

A few notes on the report:

  • If time rounding is turned on, all hours will be rounded according to your settings.
  • All tabs will only display the clients, projects, teammates, or tasks with time tracked during the timeframe you’re viewing on the company-level report above.
  • Fixed Fee projects are not included in the profitability calculations in the team or tasks tabs. This is because Harvest does not have a way to distribute revenue among individual people or tasks on a Fixed Fee project.

Clients tab

The clients tab shows the revenue, cost, profit, and profit margin by client for the time period selected on the report. Clicking a client name will drill down further into that client’s projects for that same time period. 

Projects tab

The projects tab will display the revenue, cost, profit, and profit margin by project for the time period selected on the report. Selecting a project in the report will allow you to view the Tasks and Teammates associated with the selected project in that timeframe. 

Team tab 

The team tab will display the revenue, cost, profit, and profit margin by teammate for the time period selected on the report. Note that Fixed Fee projects are not included in the profitability calculations in the team tab. This is because Harvest does not have a way to distribute revenue among individual people on a Fixed Fee project.

Tasks tab

The Tasks tab will display the revenue, cost, profit, and profit margin by teammate for the time period selected on the report. Note that Fixed Fee projects are not included in the profitability calculations in the tasks tab. This is because Harvest does not have a way to distribute revenue among individual tasks on a Fixed Fee project.

How to use the Profitability report

You can use these tabs on the report to inform key business decisions. For example, let’s say you need to know if a particular service your team offers is profitable for your company. You can find this info by pulling up the Tasks tab in the table. This view will show you all the tasks your team tracked time to in the timeframe selected on the report with a breakdown of the revenue, cost, and profit for that task. 

Or let’s say you’d like more insight on how your team’s projects are faring based on their current pricing model. The Projects tab will allow you to see profitability at the project level so your team can determine if your pricing models need to be restructured.

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