Completed Project Profitability Report

When looking at the financial reports for a company, it is easy to get caught up in big-picture enterprise numbers analysis. When this happens, there is the very real risk of missing an important piece of information.

This was brought home to me when I had a client comment that “I know we are going through these financial numbers every month to see if the business is improving, but is there any way to see the financial results on a JOB basis? I want to know if the JOB was profitable.

He is absolutely right. If the jobs are not profitable, there is no way the company is going to be profitable.

A few topics to keep in mind --

Profitability starts with picking the right market segment

Until you know who your market is and what they are willing to pay for, your potential for profit is limited
Choosing your market segment

Know the difference between "Mark-Up" and "Margin"

When is 10% profit not really 10% profit?
When you use MARK-UP instead of MARGIN
Mark-Up vs. Margin

Make sure your estimate includes everything, every time

If you miss, or mis-price, something in an estimate, one of two things is going to suffer. Your WALLET or Your REPUTATION.
My choice for estimating

Manage subs to manage jobsite quality and profitability

Ensure the work onsite is done the way you want it done with the Scope of Work > Work Order > Inspection Report process.
Sub Management Documents

Discipline your process to allocate costs to the specific project

Use your accounting platform to allocate ALL direct costs to the specific project. And do your best to allocate indirect costs as well.
Overhead Allocation

Did you make a profit on your last project?

The form, available for download below, will help you answer this critical question.

It is a top-level report that compares the total collected from the client to the total you paid to build the project, and then informs you if the job was profitable or not. 

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