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.
|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.
|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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