Labor cost and profit

In addition to hourly rates, you can also define cost rates.Then, you can compare what you charge clients vs what you pay your team.

Cost rates work the same way as billable hourly rates and you can define them right next to billable rates.

Difference between billable and cost rates:

  • Cost rates are always applied , no matter if an entry is billable or not
  • You can put zero as a cost rate , eg. for projects that don’t incur costs

Later, when you run a report, you can choose whether you wish to see:

  • Billable amount – what you charge clients
  • Cost amount – what you pay your team
  • Profit – the difference between billable and cost (can be negative if costs are greater than income)

Currently, cost and profit can only be seen in Detailed report, while support for Summary and Weekly report is coming later.

labor-costs-example