Use project management software
It’s important that you’re able to see how lucrative your projects are so you measure your business’ success and decide whether any changes need to be made. Thankfully, there are solutions available to you if you need a way to track the profit you are making on projects whilst you’re working on your projects. These include project management software.
Use project management software to gain more clarity
Project management problems can have a big impact on your profitability. Complications with scheduling and timing can result in you turning a smaller profit than you’d hoped for. One way to measure the profitability of your project or campaign is to log the time that you’re spending on a project so you can compare it to your profit margin.
You’ll also need to record the resources that you are using. By gaining greater control and visibility over your costs, you can get a clearer idea of how much profit you’re realistically likely to generate.
Avoid going over budget
When projects run over budget, they can reduce your profits significantly. By using the same systems and processes to track budgeted costs, actual costs, purchase orders and committed costs, you can remain within your budget. You also need to find new ways of tracking non-chargeable activities like meetings so you can gain a clearer idea of what your staff are spending their time on.
Track time and expenses
Automated notifications can also help you avoid going over budget or missing deadlines. It’s also helpful to automate the generation and distribution of invoices to save valuable time and resources. More and more companies are using software to automate a host of tasks that were previously carried out by members of their team. Automation can tell you when you’re about to go over budget and if a major deadline is getting closer.
A simpler solution
Using a single solution to track time, procurement and expenses can help you avoid a great deal of confusion. When you’re using multiple software solutions, confusion can easily arise as the data differs from one system to another. Every activity you spend time on during a project is a cost to you, so it’s essential that everything is tracked.
Get the right software for your needs
The right comprehensive solution can help you track all the time and money spent on each project. This enables you to focus on the most important tasks, make your business more efficient and become more profitable.
The best project management software is simple to use and supports fixed price, time and expenses invoicing. It also makes it easy to assign invoices, bills and bank transactions to your projects. With the right software, you can track all the jobs that you’re currently through.
If you’re ready to find out more about how project management software can benefit you, and how we can help you with bookkeeping or other services, contact AO Accountants today. You can reach us by completing the form on our site, by giving us a call on 020 7164 6507 or by sending an email to contact@ao-accountants.co.uk.
