Revenue

Revenue is the income generated from billable work. In time tracking, revenue is calculated by multiplying billable hours by revenue rates, providing visibility into earnings and profitability.

Key Characteristics

  • Billable-based: Only billable hours generate revenue.
  • Rate-dependent: Calculated using revenue hourly rates.
  • Client-facing: Represents what clients owe for services.

Revenue Components

Net Revenue

Billable time multiplied by revenue per hour.

Revenue Tax

Tax applied to net revenue (where applicable).

Total Revenue

Sum of net revenue and revenue tax.

Revenue vs Cost

Revenue Cost
Income from clients Expense for labor
Billing rates Internal rates
Profitability source Profitability drain

Impact on Workforce Planning

For businesses using time tracking software like Sandtime.io:

  • Earnings visibility: See revenue as work happens.
  • Profitability analysis: Compare revenue against cost.
  • Client billing: Generate accurate invoices from tracked time.
  • Forecasting: Project future revenue from planned work.

Best Practices

  • Set revenue rates for all billable team members.
  • Track billable vs non-billable time accurately.
  • Use temporal rates when rates change.
  • Review revenue reports against actual invoices.
  • Monitor revenue by project for profitability insights.

Revenue Reporting

By Project

Total earnings per project or client.

By Member

Individual contribution to revenue.

By Period

Monthly, quarterly, or annual revenue trends.

Profitability

Revenue minus cost for margin analysis.

Revenue Calculation

Billable Hours x Revenue Rate = Net Revenue
Net Revenue + Revenue Tax = Total Revenue
Total Revenue - Total Cost = Profit

Common Challenges

Non-billable Time

Work not marked billable reduces apparent revenue. Track billable status accurately.

Missing Rates

Members without revenue rates show zero revenue. Set rates for all billable staff.

Rate Mismatches

Tracked rates differ from invoiced rates. Reconcile regularly.

Revenue comes from billable hours multiplied by hourly rates. It appears in custom reports alongside cost. Revenue rates are set per assignment and can use temporal rates for historical accuracy.

Related Terms

Explore other time tracking and workforce management definitions.

Access Control

The system of permissions controlling who can view, edit, or manage resources. Defines what each role can do.

Read more →

Activity

A single time entry representing work performed. Activities are the building blocks of timesheets and reports.

Read more →

Administrator

A user with full organization control including settings, billing, members, and all projects.

Read more →