When managing a project in 1time, keeping track of financials is crucial for budgeting, forecasting, and ensuring profitability. One key feature within the system is the Financial Summary panel, which provides an overview of a project’s financial health. But how exactly is this summary calculated? Let’s break it down.
The Key Components of the Financial Summary
The Financial Summary panel is derived from several important data points, including:
- Budgeted Revenue – The estimated income expected from the project.
- Budgeted Cost – The anticipated cost required to complete the project.
- Percent Complete – The manually updated estimate of how much work has been finished.
- Total Hourly Cost of Employees – The calculated hourly expenses associated with team members working on the project.
How the System Calculates Financials
The system determines the cost to date by summing up the cost of the hours already logged by employees working on the project. With this data, along with the manually updated percent complete, the system projects the final cost of the project.
Why Percent Complete is Crucial
Unlike some automated tracking tools, percent complete must be updated manually by an administrator as the project progresses. This ensures that the financial forecast remains as accurate as possible. If this value is outdated, the projected cost may not reflect reality, potentially leading to financial discrepancies.
Ensuring Accuracy in Financial Projections
To maintain the most accurate financial summary, administrators should regularly:
- Update the percent complete to reflect actual project progress.
- Monitor logged hours to ensure team members’ time is being correctly recorded.
- Compare projected costs with actual expenditures to identify potential cost overruns early.
By keeping these factors in check, the Financial Summary in 1time becomes an invaluable tool for tracking project profitability and ensuring that budget expectations align with real-world performance.
Whether you’re managing small or large-scale projects, understanding how the Financial Summary is calculated can empower you to make informed decisions and keep your project on track. Be sure to update the percent complete regularly and review financial projections to avoid any surprises along the way.
Sign up today.
