In a project's finances overview, you'll see at the top a high level report like this:
There are two major sections: Planned and Actual. In this article we'll dive into how each of these is calculated.
Planned
Planned refers to your planned revenue, costs, and profit for the project, based upon what you've entered into your scope of work and affected by final selections made by your client. Here is how it breaks down:
Project Total is the grand total for your project, inclusive of every line item's client price, your management fees, and sales taxes you collect from the client.
Sales tax to collect is the total of client sales taxes estimated over all the items in the project.
Revenue is your expected revenue, which is the subtotal of your scope plus your management fees. This includes the markup you baked into your prices.
Cost of Goods is the total of your internal costs defined in your scope of work and approved selections.
Gross Profit is the difference between your revenue and your cost of goods.
Actual
Actual reports on actual revenue and expenditures to date on this project. It is simply based on your invoices (representing income) and your Purchase Orders and Expenses recorded. Here's how it breaks down:
Revenue is the total revenue over all your invoices (sales tax not included, as that is the State's revenue).
Spent is the total of all purchase orders and expenses.
Sales tax collected is the tax you've collected from clients from all your invoices.
Gross profit is revenue minus spent.