Guide Categories
Projects
Track and manage income, expenses, and profitability associated with individual contracts, customer relationships, or project-based work.
Overview
The Projects tab supports detailed tracking and management of income, expenses, and profitability associated with individual contracts, customer relationships, or project-based work clusters. This powerful feature enables comprehensive project-based accounting and reporting.
Note
Creating a Project
To set up a new project and start tracking its financial performance:
- Navigate to the Projects tab
- Click the New Project button
- Enter the project name and any relevant details
- Save the project to begin tracking transactions
Pro Tip
Associating Transactions with Projects
Once you have created a project, you can associate your financial transactions with it to track project-specific performance:
Income Transactions
When recording sales invoices, receipts, or other income transactions, select the appropriate project from the project drop-down menu to track revenue by project.
Expense Transactions
Link expenses, purchase invoices, and other costs to projects to monitor project-specific spending and calculate accurate profit margins.
Purchase Orders
Purchase orders can also be linked to projects. However, note that these expenses will not be accounted as actual costs until invoiced.
Note
Key Information Fields
| Field | Description |
|---|---|
| Name | The title or name assigned to your project |
| Income | Represents total income allocated to the selected project |
| Expenses | Displays the accumulated expenses assigned to the project |
| Profit | Shows net profit, calculated as Income minus Expenses. Click to access detailed P&L for the project |
| Purchase Orders | Reflects expenses from purchase orders not yet invoiced. Click to view uninvoiced purchase orders |
| Revised Profit | Adjusted profit accounting for potential expenses from uninvoiced purchase orders |
Project Profit Analysis
Understanding the difference between Profit and Revised Profit is crucial for accurate project evaluation:
Profit Calculation
Profit = Income - Expenses
This shows the current realized profit based on actual invoiced transactions.
Revised Profit Calculation
Revised Profit = Profit - Uninvoiced Purchase Orders
This provides a more realistic view considering pending expenses from purchase orders.
Warning
Best Practices
- Create separate projects for each major contract or client engagement
- Consistently link all related transactions to the appropriate project
- Monitor project profitability regularly throughout the project lifecycle
- Use revised profit figures for more accurate financial planning
- Review project performance to improve future pricing strategies
- Track project budgets against actual costs and revenues
- Generate project-specific reports for client billing and internal analysis
- Archive completed projects to maintain historical data