Track time. Get paid.
Example: understand a fixed-fee margin
See how recorded delivery costs affect a fixed-fee job. Keep the agreed fee separate from the value of time at an hourly rate.
Example · Product behaviour checked . These are demonstration records, not customer results.
The example in one line
(AUD 2,000.00 − AUD 800.00 − AUD 200.00) ÷ AUD 2,000.00 = 50%
Inputs
- Agreed fixed fee
- AUD 2,000.00
- Approved time, all within the reporting period
- 10 hours
- Recorded labour cost rate
- AUD 80.00 per hour
- Direct expense included in the fixed fee
- AUD 200.00
- Hourly bill rate, for comparison only
- AUD 150.00
Results to reconcile
- Fixed-fee revenue basis in this report
- AUD 2,000.00
- Recorded labour cost
- AUD 800.00
- Recorded expense cost
- AUD 200.00
- Gross profit
- AUD 1,000.00
- Gross margin
- 50%
- Time at the hourly bill rate, not fixed-fee revenue
- AUD 1,500.00
Try the same steps
- 1
Set the fee
Create a fixed-fee project for AUD 2,000. Record labour costs separately from the hourly bill rate.
- 2
Record delivery costs
Approve 10 hours with an AUD 80 cost rate and an AUD 200 expense included in the agreed fee.
- 3
Read the report
Choose the period containing all this project’s recorded work. Compare the fixed-fee revenue basis with labour and expense costs.
How we checked it
We created this fixed-fee example and ran TimeLodge’s profitability report for its recorded period. The check compared each report amount with the displayed inputs.
- The report uses the agreed fee rather than 10 hours at the hourly bill rate as its revenue basis.
- Recorded labour and expense costs reduce gross profit to AUD 1,000.
- No invoice or payment is created by opening the report.
What this example covers
- Gross profit here excludes overheads, tax and payment fees. It is not net profit or cash received.
- All recorded project hours fall within this example period. A narrower period receives only its share of the fixed-fee revenue basis.
- Only authorised people can view private costs. Missing cost records must be resolved before relying on a margin.
See the product screen
This actual product capture shows a separate example. Its names and amounts are not the inputs reconciled above.
