Financially-savvy and successful project managers need comprehensive capabilities for reporting on project revenue and invoiced data for time & materials, fixed price and cost plus contracts. For fixed-price projects, there are a number of different methods needed for recognizing revenue, based on a fixed schedule, percent of work complete, or simply when the work is invoiced.
Whatever method is appropriate to recognize revenue on a contract, it is invaluable for project managers to have real-time insight into key financial metrics such as: what is billable and what has been billed; what is unearned versus recognized revenue; and the differences between billed and earned amounts. This enables project managers to monitor whether projects are proceeding as planned from a billing and revenue perspective.
Furthermore, real-time insight for project managers on the fully-burdened cost of accomplishing the work, and thereby project profitability or net margin, can be invaluable, especially as deadlines or funding thresholds are approached. Analysis should include both actual costs as well as forecasts. Whether through summary or detailed tabular reports, or via graphical charts, empowering project managers with the information they need at a glance increases their financial savvy so that they can ensure project profitability is maximized, and customer expectations are met.
To learn more about how Unanet can make your project managers more financially-savvy, view our on-demand webinar "Selecting the Right KPIs for Your Project Based Organization"