No business can afford to run projects at a loss. This is why tracking project profitability is a crucial part of business management and imperative to ensure that your business ventures remain both financially sustainable and profitable.
Looking into the profitability of projects – whether that be running a business campaign or trialing a new supplier for a limited edition product offering – would require a thorough look into the financial statements of a specific project. In simple terms, you want to know that the income derived outweighs projects costs and that your efforts on the project remain viable.
With QuickBooks Plus‘s financial tracking and reporting ability you can do this with ease.
Track the profitability of your projects with QuickBooks Plus
QuickBooks Plus allows you to set up projects, record income and expenses and generate project-specific reports to monitor the progress and viability of various projects within your business. Having up-to-date financial information about your business at your fingertips is priceless when it comes to managing the profitability of your business. Knowing where you spend and make most of your money can help you predict and mitigate risks to ensure favorable project outcomes.
We take a closer look at the steps to follow when using QuickBooks Plus to monitor projects effectively and to make informed decisions swiftly especially when the stakes are high.
- Add project details to QuickBooks Plus: To track profitability, you must first set up your projects within the software. This can be done within the Projects tab. Here you will also need to add project-specific information that include type of project, project timeframe and cost and profit projections.
- Record project expenses: Once you have added your project information you can start adding some of the costs incurred and also have the project set up to automatically allocate related costs throughout the project. Remember to upload evidence for expenses that are added manually.
- Record project income: capture all income related to the project. This would include income from sales.
- Monitor profits: Within QuickBooks Plus you can generate reports to help you track project profitability. Within the Project menu tab where you have added your specific project information, project profitability margins are automatically updated – and shown in the form of a graph, as your project progresses. You can generate reports such as Profit and Loss statements per project.
Within QuickBooks Plus you can also set up alerts to help you stay abreast of payment due dates and low-budget notifications. This can come in handy when managing more than one project at the same time.
It is advisable to regularly run project reports within QuickBooks Plus to make informed decisions timeously when managing projects. At Fusion CPA, we can help you do this.
From project profitability tracking to generating business-wide reports to help your company thrive, Quickbooks Plus is designed to offer the features that medium and larger-sized businesses need. Our consultants are trained to set this software up to suit your business needs and we can advise on the best practices for your business industry.
Fusion CPA is a team of professional accounting controllers. We understand Quickbooks’ benefits, know if it’s right for your organization, and can help you get the most out of it. Learn more about how Fusion CPA uses QuickBooks Plus and other accounting software to help organizations manage their finances and grow their businesses.
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