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Getting Around the Budget: Budgeting and Profitability Tabs
Getting Around the Budget: Budgeting and Profitability Tabs

Understand the Budgeting and Profitability tabs in Productive to gain insights into your budget's financial health and performance.

Updated over a week ago

Every budget in Productive can be viewed through two distinct perspectives, divided into two tabs: Budgeting and Profitability. These tabs provide essential insights into your remaining budget, internal profitability, and overall financial performance.

Budgeting Tab

The Budgeting tab includes three sections: Time, Budget, and Invoicing.

This tab calculates the remaining budget by multiplying billable rates with billable time and subtracting the calculated amount from the total budget as team members log their time.

Time Section

  • Displays budgeted time, billable time (what you plan to invoice your client for, based on, but does not have to be equal to hours logged), and remaining time.

  • Shows the percentage of the budget remaining.

Budget Section

  • Calculates the remaining budget dynamically as time is tracked.

  • Updates in real-time based on billable rates and logged hours (e.g., we see 5 billable hours x the billable rate of $100/h = $500 budget used)

Invoicing Section

  • Tracks how much has been invoiced and what remains to be invoiced.

Profitability Tab

The Profitability tab includes sections for Time, Profit, and Invoicing.

This tab is primarily for internal use, offering a detailed look at the project's profitability by calculating costs and profits based on tracked time and employee cost rates.

Time Section

  • Shows all time spent on the project, including estimated and non-billable time.

  • Displays remaining time against the budget.

Profitability Section

  • Calculates internal profitability using employees' cost rates per hour.

  • Reflects the impact of tracked hours on overall profitability.

  • In the example below, a team member has tracked 10 hours against this budget. This has reduced the total budget by $300, as one hour of work for this employee costs you $30 (set up in their cost rates section).
    At the same time, the profitability of this budget was affected too.

Invoicing Section

  • Mirrors the invoicing details from the Budgeting tab for consistency.

User Permissions

The visibility of these sections depends on the user's permissions:

  • Profitability Managers and Admins have access to both the Budgeting and Profitability tabs.

  • Managers only see the Budgeting tab, while Staff and Coordinator permission sets do not include either tab.

  • Custom permission sets can also be created to grant access to specific financial information.

Bottom Line: Using Both Tabs

So, all things considered, as soon as an employee logs hours against a budget, two changes happen:

  • The total budget is reduced (what the client wants to know; Budgeting tab)

  • The total profitability is reduced (what your agency wants to know; Profitability tab)

Important Considerations

Overhead Costs

  • Enabling this add-on increases the internal hourly cost of staff, enhancing the accuracy of profitability calculations. Read more here.

Out-of-Pocket Expenses

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