Time and Material billing is a method of charging clients based on the actual hours worked. This approach is ideal for projects with constantly changing requirements, ensuring that clients are billed accurately for the hours reported.
In this Article
- Key concepts to remember for navigating financials dashboard
- Accessing Financials for Time and Material projects
- Revenue Tracker
- Hours Tracker
- Progress Charts
- Breakdown charts
- Hours breakdown
- Summary Table
Key concepts for navigating financials dashboard
Budgeted hours: When you create a project, you typically estimate or set a total number of hours that you expect it will take to complete the project as budgeted hours.
Allocated hours - The total number of hours allocated for the project via resource management.
Tracked hours refers to the total number of hours that your team has tracked for the project. It represents the actual time spent working on the project and is reported using timesheets.
Budget is the notional revenue target for the project. The system will send you budget notifications based on this.
- Actual values are calculated based on the time tracked during the delivery of the project
- Planned values are calculated based on the resource allocation plan for the project
Cost is calculated based on the hourly cost rate of your team members.
Hours tracked * Cost rates of respective team members/roles
Profit is the cost remaining from the revenue after covering all project costs
Recognised revenue - Cost
Profit Margin is the ratio of profit to recognised revenue
Planned cost is Allocated hours * Cost rates
Planed profit is planned recognised revenue - planned cost
Planned profit margin is (planned profit / planned recognized revenue)*100
Accessing Financials for Time and Material projects
The financial dashboard gives you insights into your projects' real-time budget and time usage. The dashboard lets you compare the real-time utilization of your budget with the estimated budget and enables you to make necessary adjustments for the smooth running of the project.
To access Financials,
Navigate to Projects
Select a Fixed fee project you wish to view
Click on the Financials tab to track your project budget usage alongside the project hours.
With the progress chart, you can understand data regarding how revenue recognised and hours usage has progressed for the project over time. This helps you compare the current progress with the planned trajectory of revenue and hours.
The progress charts provide you with information on the revenue recognised for the project over time.
X-axis is days.
Y-axis is revenue
The progress charts provide you with information on the hours tracked for the project over time.
X-axis is days.
Y-axis is tracked hours
A Breakdown chart shows you the monthly breakdown of revenue recognised and hours usage
Shows the monthly breakdown of planned and actual revenue recognised and the corresponding profit margin
Shows the monthly breakdown of billable and non-billable hours and the corresponding allocated hours
You can view the detailed summary of hours usage and cost for the overall duration of the project or on a granular monthly basis.
Revenue details table shows the detailed breakdown of revenue recognised and cost incurred for the project.
Hours details table shows the detailed breakdown tracked hours for the project.
Group by Roles and People Visualize the cost and hours utilized by each role and team member on the project
Group by Phases and tasks Visualize the cost and hours utilized by different phases and tasks in the project.