Gain insight into your profit margins based on hours logged and monthly expenses at each location.
Janitorial companies often lack a clear understanding of their financial performance across multiple locations. Spreadsheets are often outdated or take a lot of time to maintain. This can lead to inefficient resource allocation, inaccurate cost estimates, and missed opportunities for maximizing profits.
This report requires setup to add key information. It will only calculate profit moving forward, not historically. Click here for quick tour of report
Example after your setup:
This functionality is ONLY available in the Scale and Loyalty plans. To upgrade your plan, click here.
Pre-Requisites for Report
Admins need to fill out certain key data points to get started with the report:
- Location Details: Admins need to add contract value, budgeted labor cost, hours quoted, and square footage in the location details page.
- Employee Pay Scale
Admins can update the pay scale for the team members. This helps us in calculating the estimated labor costs.
- Pay Period Settings
View Profitability Report
Once all details are added to locations and teams’ profiles, navigate to the reports tab in the left menu. Click on Profitability Report. Here you can get a detailed breakdown of metrics like profit, contract value, labor cost variance, and profit margin percentage.
Details:
- Here you get the list of all existing locations, if you want to update location details, click on the location’s name and edit.
- The client’s column shows all clients listed as per the location.
- Contract value is the amount you entered on the location details.
NOTE: The Contract Value can be adjusted for a specific month within the profitability report, while the default value set in the location details page will still apply for subsequent months.
- Actual budget Vs Labor cost: Actual budget is the Allocated budget amount in the locations’ details vs. Labor cost, which is calculated as Recorded Hours X Pay Scale.
NOTE: We only calculate flat rate and DOES NOT include overtime rate and holiday hours calculations
- Other costs include all the costs that are not associated with labor costs, such as insurance costs, supplies costs, etc.
- Profit is calculated as monthly contract value minus (actual labor cost + other costs)
- Labor cost variance shows the difference between actual vs. budgeted labor costs. Green means you underspent, red means you overspent, and black means on target.
NOTE: The profitability report for the given month will be available after the last pay period for that month ends. For example, if the pay period is Aug 27-Sep 2, the report for Aug will be available on Sep 3rd.
Quick Note:
The report is updated regularly, so any changes made to the payroll report hours and to the monthly contract value and other costs will be reflected right away. And the report will be updated if you adjust the numbers for the previous months.
If you want to learn more or have any questions, check out our support center or reach out to us via the chatbot on our website or at support@sweptworks.com.