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.
Related Terms
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.