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How to track project profitability with time and invoices
Tracking project profitability means comparing what a project earns against the time invested in delivering it. Plutio's time tracking and invoicing features work together to reveal which projects generate healthy returns and which consume more effort than they bring in, so pricing and resourcing decisions can be based on real data.
- Set billing rates. Billing rates define the hourly value of tracked time. Rates can be configured at the workspace level under Settings > Time tracking, or overridden per team member and per project. Setting project-specific rates is useful when different clients are billed at different hourly amounts. Getting rates right from the start ensures time-to-invoice calculations are accurate.
- Track time on project tasks. Time can be tracked against specific tasks within a project using the timer or by logging entries manually. Each time entry records the duration, the team member, and the task it belongs to, which creates a detailed log of where effort is going. Consistent time tracking is important because gaps in the data make profitability calculations unreliable.
- Review time entries. The time tracking section shows all logged entries with filters for project, team member, and date range. Reviewing entries before invoicing catches any missing or duplicate logs. The total hours and total billable amount are displayed at the top of the filtered view, giving a quick read on effort and value.
- Create an invoice from tracked time. Inside a project's time tracking view, clicking Create invoice generates a draft invoice with line items based on the logged hours and billing rates. Each time entry becomes a line item with the description, hours, rate, and total pre-filled. The invoice can be reviewed and adjusted before sending to the client.
- Build a custom page widget to visualise margins. A custom page can be set up to display revenue and effort side by side. Adding a chart widget with Invoices as the data source grouped by project shows earnings per project. A companion widget using Time entries grouped by project shows hours invested. Comparing the two columns reveals which projects are profitable and which are underperforming.
Understanding project margins
Profitability is clearest when revenue and effort data are visible together. Revenue comes from paid invoices linked to the project, and effort comes from total hours tracked multiplied by the billing rate. A project where the invoiced amount closely matches the billable value of tracked time is breaking even. Projects where invoiced revenue significantly exceeds the billable value of time spent are the most profitable, and identifying them helps guide decisions about which types of work to pursue. Projects that consistently run over in hours but don't generate proportionally higher invoices may need repricing or tighter scope management.
Building a profitability page
A dedicated profitability page can be set up with two or three widgets. A bar chart of invoiced amounts grouped by project shows where revenue is concentrated. A second bar chart showing hours tracked per project reveals where the team's effort goes. Reviewing the two side by side highlights any mismatches, like a project with high hours but low invoice value. Checking the profitability page monthly helps catch underperforming projects early and gives enough lead time to adjust pricing or resource allocation before margins erode further.
