You must be invoicing out of Financial Cents to use these reports.
Track realization and identify which clients, team members, projects, and services are driving firm profitability.
You can track realization and profitability by client, team member, project, or service item using the tabs at the top of the page.
You can access your realization reports from the Reports tab in your left navigation.
Additionally, each report comes with a set of filters (such as date, client group, etc.) so that you can drill down into the data that's most relevant to your firm. Do also note that for each report, you have the option to either include or exclude Draft Invoices from the calculations:
Below is how we calculated each metric:
Important notes:
Realization is based on invoices sent, not invoices paid
When you adjust the $ amount on an invoice, it will automatically record it as a markup or down in the realization report
Hourly billables
Billable time tracked * hourly rate for team members
This will only include hourly work that has been invoiced for
Fixed billables
$ value of the fixed fee work that has been invoiced for
Total billables
Hourly billables + fixed billables
Actual amount billed
The total $ amount actually invoiced to the client
Write +/-
Actual amount billed - Total billables
You can write up and down invoices by adjusting the $ amount on an invoice
Realization
Actual amount billed/ Total billalbes
Labor cost
Cost of the employee's time
You can set the labor cost for each team member on the Invite team tab
Gross profit
Actual amount billed - labor cost
Margin
Gross profit/ actual amount billed