In addition to billable rates, you can also define cost rates and see what you charge clients vs what you pay your team, and track profitability.
Labor cost is an extra feature, which you can enable by upgrading your workspace to Pro or Enterprise plan. You can try out the feature for free by activating the free 7-day trial (no credit card required).
Defining cost rates #
In order to see and define cost rates, you first have to enable cost rates in workspace settings.
Cost rates work the same way as billable hourly rates and you can define them right next to billable rates.
Difference between billable and cost rates:
- Cost rates are always applied, no matter if an entry is billable or not
- You can clear cost rate -, eg. for projects that don't incur costs
Seeing costs and profit in reports #
When you run a report, you can choose whether you wish to see:
- Billable amount - what you charge clients
- Cost amount - what you pay your team
- Profit - the difference between billable and cost (can be negative if costs are greater than income)
Exports follow what you're seeing in the interface. For example, you can set "Show cost" in a report, export PDF, and send it to payroll; or you can set "Show amount", export PDF, and send it to clients.
If you're exporting a report in CSV or Excel:
- "Show amount" will give you "Billable amount" and "Billable rate" for each entry
- "Show cost" will give you "Cost amount" and "Cost rate" for each entry
- "Show profit" will give you everything: "Billable amount", "Billable rate", "Cost amount", "Cost rate" , "Profit amount", and "Profit rate" (caclulated difference between the two rates)