How do I estimate my current Gross Profit from the Financial tab in the Project?

Gross Profit is a critical financial metric that represents the revenue generated from a project minus the costs incurred. In Contractor Foreman, this is automatically calculated based on the data entered into the platform.

In contractor Foreman, gross profit is calculated using the below formula.

Gross Profit = Invoiced to Date − Actual Costs

This calculation helps determine the profitability of your project, allowing you to make informed decisions about resource allocation, budgeting, and financial planning.

You can view the current gross profit in the Summary tab of the project. The summary provides a quick overview of the project’s financial status, including gross profit, invoiced to date, and actual costs incurred.

For the gross profit calculation to be accurate, it is essential that all financial items related to the project are properly entered and approved.

In addition to the gross profit, you can also access your current Estimated Gross Profit in a project, go to the the Financial tab, which is located on the left panel. This tab contains all the financial data associated with your project, such as invoices, estimates, and other cost records. Within the Financial tab, the Estimated Gross Profit will be displayed on the right side of the page. This figure represents the sum of the estimated profit that comes from your Estimate, Change Orders, Work Orders and if applies, Service Tickets.

The estimated gross profit figure is automatically updated as new financial information is entered into the system. For example, when Change Orders get approved, the gross profit calculation adjusts accordingly.