Whats the difference between profitability reports and financial statements?
Profitability reports are based on job tasks, job billings, and job costs. Financial statements are based on general ledger journal entries. This means job profitability reports show “soft” costs, like in-house expenses, labor cost from time sheets, and job cost transfers. In contrast, financial statements show literally what’s been posted to income, cost, and expense G/L accounts. Financial statements focus on accounting periods, while profitability reports can look broadly at job profit by date, period, or even job status. Profitability reports don’t show overhead expenses, since those expenses aren’t usually posted to jobs.
