Costlocker was created to provide a detailed insight into your financial performance and effectiveness of projects, clients and people. To make your life easier, we’ve prepared basic financial reports that enable you to manage your company based on numbers rather than feelings.
What kinds of projects keep you in business
If you do websites, mobile apps, performance campaigns, social media and even more kinds of projects, it’s easy to get lost in what is actually profitable and what is not. Take a look at how much money the different project types made you, or which have the highest profit margins.
Open the finished projects list (Projects -> Finished projects) and use the tag filter to filter out one type only, e.g. Website. This will show you how much profit these projects made during the past year, or individual quarters. At the same time, you’ll see what their profit margin was. Repeat this to filter out different types of projects and compare.
This report will show you how many % of your profit is generated by individual project types, how much it is in total and which project type is the most profitable. You’ll get a much better idea about what really keeps your business running or which projects you should focus on, because they are very profitable for you.
How much discounts you’ve given your clients
Do you keep track of how many discounts have you given your clients during the past year? It’s usually necessary to inspect all of the cost estimates you sent to all of your clients and use the calculator add up all of the discounts. Costlocker can do this for you in 5 seconds. No calculator.
Open the finished project list and filter out only those tagged with the Discount tag. This will only show you the discounted projects.
Another way to do this is to go to the client list and see how much you lost on discounts during the past year or quarter.
Which client is the most profitable
Your accountant can easily tell you what turnover you made on individual clients. However, you still won’t know what the profit was. Costlocker can tell you this, helping you decide which clients are worth working for and which are not. The client profit is affected by the worked time costs, and if these costs cannot be translated into their invoices, something’s wrong.
If you see a client with a significantly lower profit, click their name and display their project list. This list can be sorted by profit to see which projects are the reason for your low profits. The most frequent cause is client care that costs you lots of time and isn’t billable.
Who made you the biggest buck
When your employee comes to you asking for a raise, you’re usually left with evaluation based on feelings – how much of a team player they are, how the clients perceive them, whether they do anything extra, etc. With Costlocker data, however, you can easily see how much money this person has made you compared to other colleagues, or how profitable their job was. On the other hand, you can also see how much turnover you lost because they kept exceeding their time estimates. These hard data will give you a much more complex idea about their overall benefit for the company.
How to set your client rates for the next year
Frame contracts with clients usually include activities or roles that you invoice them for on individual projects – e.g. Project management, Designer, Creative, etc. These contracts are often revisited annually. When you meet your client’s salesperson by the end of the year, they will probably want better rates for the following year of cooperation.
Costlocker will help you see which activities or roles make you the biggest profit with any particular client. This enables you to give them larger discounts on activities or roles that don’t make you as much profit, and, on the contrary, stand your ground with the prices of activities or roles that make you the most. Throughout the year, this decision can save you a tremendous amount of money.
How much you’re going to invoice in the following months
To manage your cash flow effectively, you need to know what income you’re going to see in the following months. No accounting software can tell you this, but Costlocker can. Its Billing outlook screen shows you what, when, and for how much you’re going to invoice.
You won’t only see the future invoices that account or project managers have planned on your projects – you’ll also see what’s still left to be invoiced and nobody has even planned the billing yet – Costlocker will remind you about it so you won’t forget to invoice your work ever again.
Moreover, it will also include projects that have not yet been opened, but will be in a few months – these are fee-based projects that you’re about to invoice in the coming months.