Evaluating project profitability is critical for prioritizing work and determining what type of projects and clients are worth pursuing in the future.
Watch the video to learn how to use Scoro to gain project performance insights and make informed decisions about your next business move. Alternatively, explore the GIF guide for step-by-step instructions.
Profitability by projects
We recommend beginning the profitability analysis at a portfolio level to understand what type of projects generate the highest margin for your business.
To do this, filter out completed projects from the project list view. Add income, external cost, labor cost, and profit columns to the view.
- Income shows you how much revenue each project generated based on the issued invoices.
- The external cost summarizes expenses incurred by the team throughout project delivery and supplier bills.
- Labor cost column shows the internal delivery cost of delivering the project.
- The project profit column shows how much you are making from each project after deducting delivery costs from the invoiced amount.
- To get an overview of the average project profitability in this list, Open the summary bar and add the Project profit percentage column to your view.
Profitability by clients
While clients that generate the most revenue may seem the most attractive to work on, factoring in the direct and labor costs can paint a different picture.
To understand the profitability at a client level, use the project list view. First, include the profit column to see how much you are making from each project after deducting external cost and labor cost from the invoiced amount. Margin (profit %) helps to compare different projects.
Then group the list by clients and summarize it to view the profitability by clients. To compare which clients bring in a margin that's above or below the average, add the Project profit % (actual) metric to the summary bar.
These insights will help you make informed decisions about allocating your resources and prioritizing your customers for maximum profitability and success.
Profitability by project managers
You could also group the portfolio view by project managers to see which of your employees are more successful at managing the project scope and budget.
These insights can be valuable for knowledge sharing amongst the team and drive decision-making when allocating high-profile projects.
Profitability by individual projects and services
Once you are clear on the projects that perform well on a high level, you can look into why one or another project performed better.
Simply, open the project you want to analyze. That's where you'll find the Quoted versus Actual table, which compares the quoted scope with actual results.
You can delve into detail at a service level to see which activities went over budget so you can improve scoping the next time. It's now time to bring your site to life by onboarding your team. Go to the next section in the Getting started series for our top tips.
To summarize, you have learned how to bring your workflow to Scoro, configured your site and set up monitoring for the most relevant business performance metrics. It's now time to bring your site to life by onboarding your team. Go to the next section in the Getting started series for our top tips.