What is project profitability?

Project profitability measures the financial success of a project by calculating the profit generated (revenue minus costs). It’s a key metric for understanding which projects contribute positively to your bottom line.

How can PSA software improve project profitability?

PSA software improves profitability by automating cost and revenue tracking, optimizing how resources are assigned, reducing billing delays, supporting better budget management, and providing real-time financial visibility.

What are the main challenges that impact project profitability in professional services?

The most common challenges include inaccurate project estimates, inefficient resource use, scope creep, billing inefficiencies, unmanaged expenses, and lack of real-time financial oversight across your project portfolio.

What are the key Project Financial KPIs to measure?

Important KPIs include Project Profitability (margin), Budget Variance, Resource Utilization (billable vs. total), Revenue Forecast Accuracy, Cost Performance Index (CPI), Schedule Performance Index (SPI), Work in Progress (WIP), and overall resource cost metrics.

How does Birdview PSA help track project costs?

Birdview captures labor costs through time entries and internal rate cards, and records project-related expenses as they occur. All costs are automatically linked to the appropriate project for accurate tracking.

Can PSA software help with revenue forecasting for projects?

Yes. Birdview PSA forecasts future revenue by using current project progress, billing milestones, and historical data. This helps firms project income with more confidence and plan ahead.

How does inefficient resource allocation impact project profitability?

Poor resource allocation increases costs (e.g., overloading expensive staff with admin tasks) and reduces revenue potential (e.g., missed billable hours, underutilized team members).

Does PSA software provide real-time insights into project profitability?

Yes. Birdview PSA calculates and displays up-to-date project profitability as costs and revenue are logged—offering full visibility into margins throughout the project lifecycle.

How does PSA software streamline billing to improve profitability?

Birdview automates billing based on time tracked, expenses incurred, and project milestones. Rate cards ensure accurate pricing, and built-in approval workflows reduce delays and missed revenue.

Can I analyze profitability across my entire project portfolio?

Absolutely. Birdview’s reporting tools and dashboards allow you to view profitability trends by client, department, service type, or project status—supporting smarter financial planning at scale.