Profitability

The profitability feature, also known as Agency Rate tracking, provides insights into your agency's financial performance by calculating and monitoring the blended rate of your agency across all projects.

What is Agency Rate?

The Agency Rate is the blended rate that represents the overall financial efficiency of your agency. It's calculated by dividing the total project value by the total hours worked, giving you a per-hour rate that reflects your agency's profitability across all projects.

How Agency Rate is Calculated

The calculation varies depending on the project type:

For Billable Projects:

• Custom Rate Projects: Uses the project's hourly rate directly
• Retainer Projects: (Monthly Retainer Value × Project Duration) / Total Hours
• Fixed Price Projects: Total Project Value / Total Hours

For Non-Billable Projects:

• Uses the target rate threshold as the agency rate (since these projects generate value but aren't directly billable)

For All Projects:

• Estimated Agency Rate: Based on planned/budgeted hours
• Actual Agency Rate: Based on actual time tracked (when available)

Rate Thresholds

Configure two key thresholds to monitor your agency's financial health:

Minimum Viable Rate

The minimum rate below which your agency is losing money. This represents your break-even point including all overhead costs.

Default: $40/hour

Target Rate

The target rate for healthy agency performance. This should include profit margins and growth investments.

Default: $50/hour

Visibility and Access Control

As an administrator, you control who can view agency rate information, including:

• Agency rate calculations on projects
• Project values and financial metrics
• Client values and profitability data

Setting Up Visibility

1. Navigate to Settings > Profitability
2. Enable Agency Rate Tracking
3. Configure your rate thresholds
4. Select which roles can view profitability data

Only users with roles you've specifically granted access to will see:

• Agency rate columns in project tables
• Project value information
• Client profitability metrics
• Financial performance indicators

Users without access will see projects and clients without any financial information displayed.

Using Profitability Data

Once enabled, agency rate information appears throughout the platform:

• Project Lists: Shows agency rate and project values
• Client Pages: Displays average agency rate and total client value
• Dashboard: Provides profitability overview and trends

This helps you:

• Identify profitable vs. unprofitable projects
• Make informed pricing decisions
• Track financial performance over time
• Optimize resource allocation