How do I know if I am making a profit?

How do I know if I am making a profit?

There are different philosophies (for example, cost accounting vs throughput accounting) about how to answer that question and we have multiple tools depending on how you approach making a profit.

You will need tools to track and analyze your costs.
  • For throughput accounting, only variable costs directly tied to production (raw materials like stone and sinks) are subtracted from the revenue.
  • Cost accounting requires a tracking more costs than just stones and sinks. 
Then, you will need to know your revenue. ActionFlow tracks your revenue for you and then provides data on your profit depending on which method you use. 

The Overview and Dashboard are two places to view the Margin and Revenue and T Dollars for installed jobs. The Overview allows you to project your cost and revenue and T dollars.



Another powerful tool for tracking cost is the Hourly Definitions tool which allows you to define the time it will take to fabricate materials.

Power BI is a reporting tool that displays profit.



To increase profit in throughput accounting, you will focus on maximizing throughput whereas you will focus on minimizing costs and controlling expenses in cost accounting.