Financial Terminology
Numbers, reports and their correct interpretation are the key to successful company management. Therefore, it is very important to understand what each number means.
We have put together a table that clearly explains the financial terms used in Teamogy.
| Teamogy | |||
| Business | 10 000 000 $ | Revenues | Invoiced amount from Jobs and Client Overheads |
| – 8 300 000 $ | Direct Costs | Direct Costs in Jobs and Client Overheads | |
| 1 700 000 $ | Gross Margin | = Revenues – Direct Costs | |
| – 1 000 000 $ | Labor Costs | = recorded hours on jobs (your time records) multiplied by hourly cost rate of employees | |
| 700 000 $ | Gross Profit | = Gross Margin – Labor Costs (Gross Profit is used only for Job reports) | |
| Operation | 10 000 $ | Operating Revenues | Invoiced amount from Internal Overheads (for example rental cost re-invoiced for other entities) |
| – 1 300 000 $ | Operating Costs | Costs in Internal Overheads (Office rent, Personal costs, Internal projects, etc.) | |
| 410 000 $ | Operating Profit | = Gross Margin + Operating Revenues – Operating Costs | |
Now the example contiues into Accountancy. These operations below are NOT included in Teamogy.
| Accountancy | |||
| Financial | -10 000 $ | Depreciation & Amortization | |
| 400 000 $ | Net Financial Income | Operating profit (previous table) – Depreciation & Amortization | |
| – 90 000 $ | Interest & Taxes | ||
| 310 000 $ | Net Profit | = Net Financial Income – Interest & Taxes | |
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