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.

Profitability Settings

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

Navigate to Settings > Profitability
Enable Agency Rate Tracking
Configure your rate thresholds
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

Revenue Grid

The revenue grid on the Financials page shows three rows per project for each month:

Provisioned

The expected revenue for a project-month. This is the amount you plan to bill based on the project's billing type (retainer amount, fixed-price milestone, or time & materials estimate). Editing provisioned revenue now requires a reason — a dialog will prompt you to explain why the value changed. All changes are logged in an audit trail visible in the cell tooltip.

Invoiced

The total amount invoiced for a project-month, excluding draft and voided invoices. Color coding indicates:

Green: Invoiced amount matches or exceeds provisioned
Yellow: Partially invoiced (some provisioned revenue not yet invoiced)
Gray: No invoices created yet

Collected

The total payments received against invoices for a project-month. Color coding indicates:

Green: Fully collected (payments match invoiced amount)
Yellow: Partially collected
Gray: No payments received

Invoices

Invoices can be created and managed from individual project pages (under the Invoices section) or by clicking an Invoiced cell in the revenue grid.

Creating an Invoice

Navigate to a project page or click an Invoiced cell in the grid
Click + New Invoice
Select the Payment Entity (billing recipient)
Enter the Amount and optional Due Date
Add any Notes
Click Create Invoice

New invoices start in Draft status and are not included in invoiced totals until sent.

Invoice Statuses

Status	Description
Draft	Not yet sent. Can be edited or deleted. Not counted in invoiced totals.
Sent	Delivered to client. Sets the issued date.
Partial	Some payment received but amount outstanding remains.
Paid	Fully paid — total payments equal the invoice amount.
Void	Cancelled. Not counted in any totals. Cannot void an invoice that has payments.

Marking an Invoice as Paid

Open the invoice actions menu (from the project Invoices table or revenue grid slide-over)
Click Mark Paid
The amount field is pre-filled with the remaining balance
Enter the Received Date and optional Reference (e.g., check number, transaction ID)
Click Record Payment

Partial payments are supported — the invoice moves to Partial status until the full amount is collected, then automatically transitions to Paid.

Payment Entities

Payment entities represent billing recipients for a client. Each client has a default payment entity created automatically. You can add additional entities (e.g., different legal entities or billing addresses) from the client settings.

Projects — Managing projects and team assignments
Project Expenses — Track additional project costs beyond team hours
Member Costs — Configure team member cost rates

Profitability

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