Do you know whether you are making any profit or loss out of your project?
SlickAccount subscriber Posts: 11 Bronze Level Member
edited July 2018 in Accounting and Financial Management
Share your story with us..How you are managing your project profitability?
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It is all about project management. In short, you will need to evaluate costs vs benefits. Of course, it involves a few metrics such as IRR, ROI, ROCE, DCF..etc (all the technical terms).
Each project is of course different from others. I would say it is not difficult to compute profit or loss from a project, but it is definitely much more difficult to estimate/forecast your project cost and revenue, because it involves many assumptions. For example: if you try to estimate profitability of the business for the next 10 years, then you may need to take into account of PESTEL factors.
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