Week 2 in our profitability series highlights project profitability, and how a tool like BI360, with a strong allocation engine, can provide insight into your projects the same way it does with your products.
BI360 can just as easily build a profitability report using the same allocation model we demonstrated last week (i.e. salaries, headcount, square footage, direct expenses). However, for organizations (like a consulting firm) that may not have a product per se, square footage may not be as applicable. Maybe it’s time dedicated to each project, billable vs. non-billable… however you need to track and measure your projects, BI360’s customizable reporting tool allows you to generate accurate, insightful reports.
Plus, with BI360 you can allocate revenues and expenses from the GL department/account level and out to project codes, thereby enabling the creation of project P&Ls or other detailed project reports, helping your organization further identify and resolve issues within any given project. Here’s a video that explains how BI360 provides better insight into your profitability.