MAKE BETTER STRATEGIC SOLUTIONS

What is profitability of a business?

Profitability is the ability of a business to earn a profit. A profit is what is left of the revenue a business generates after it pays all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to the conduct of the business activities.

By identifying the profitability of each of your Line of Businesses (LoB), business owners can make better strategic decisions. This can result in identifying winning and losing areas, an in turn help decide what to do about it. (ie. close that LoB, put more resources into it to make it better, etc.)

You should never have to make a business decision based on a guess because you didn’t have the right reports with the right data. Not to mention, a standard review of your gross margin simply doesn’t provide you with enough information to effectively measure and run your IT company. You know you need to enhance your business operations, but after seeing that review you simply can’t be sure which line of business needs to be improved. What happens next is that you’re forced to guess, estimate, and waste time on complicated calculations. In the end, you still don’t have enough information to avoid the risk.

Direct labor costs

Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Wikipedia

Do you know your direct labor costs by Line of Business (LOB)?

Typical Financial Report

To help you combat this problem, we developed LaborCast

LaborCast can split out the labor costs in just a couple of minutes, so that profitability for each of your Line of Businesses can determined. To do this manually with the same amount of accuracy, would take hours each payroll.

Updated Financial Report After LaborCast

The single goal of LaborCast is to give your IT company deep insight and understanding of the information crucial to your business.

Same financial report - After LaborCast. Now you can see the true picture of your business
LaborCast pulls time entry data from your ConnectWise Manage, then splits off TRUE labor costs by each line of business.
No more estimates, just true numbers to work with. Now you’ll know exactly where you need to direct your attention and efforts based on the data.

Benefits

Proof of payroll
Assists with over time calculations
IIF file to import into QuickBooks to automate journal entries

Pricing - $149 mth

Requires ConnectWise Manage
Requires specific GL Mappings to properly function
Support included
Unlimited Users
Flat Monthly Rate