Project profitability calculation is not a direct or simple computation. Calculating profitability at the end of the project is simply highlighting an opportunity that was lost.
Profitability calculation should ideally be live, updated every day, so managers see how much of the budget has been used and if this comes close to targets, remedial action can be taken before targets are missed.
Project costs include man hours invested by the team, fixed costs, travel, training and more. It’s usually clear what would be the fixed cost and the only variable element is the man hour investment.
Individuals are paid at variable rates, some like external consultants are paid by the hour; full-time employees can be paid by the month or year. AssesTEAM helps you quantify the cost of your team on a per man hour basis. This is used to compute real time project investments via timesheets.
AssessTEAM invites individuals to have a flexible time tracking system which does not enforce, daily or weekly timesheets. For longer projects, monthly timesheets or a total time per project can be entered at the onset.
For a business knowing what project types generate the best profitability ratios is crucial. AssessTEAM combines projects into project types and displays real time profit margins by project type. Organizations often use this data to invest in marketing avenues.
Project profitability calculation is one of the cornerstones of the AssessTEAM employee evaluation system as knowing profitable teams, persons and projects give you unmatched business intelligence. Decisions about remuneration, investment and training are thus made simpler.