How to track project profit before the job is finished.

1. Start with a reliable project baseline

Record the original quote, expected costs, delivery dates, scope limits, and revision allowance before delivery begins. The baseline is what makes every later movement understandable.

• Quoted or contracted value
• Expected labor and material cost
• Deliverables and exclusions
• Revision limits and target dates

2. Track real delivery costs against the job

Connect employee or owner time, expenses, materials, receipts, and subcontractors to the project that created them. A general monthly expense total cannot explain which job consumed the margin.

• Use a consistent internal hourly cost
• Record purchases when they occur
• Attach receipts to the relevant project
• Separate billable value from internal cost

3. Record scope changes before doing the work

When a client asks for something outside the baseline, estimate the value and timeline effect before the team begins. Approved change orders increase project value; unapproved extras remain a warning, not imaginary revenue.

4. Reconcile invoices and payments

Track what has been invoiced, what is coming due, what is overdue, and what has actually been confirmed as paid. Profit and cash flow are related but different: a profitable job can still create a cash problem when payment is late.

5. Review the live margin and the reason behind it

Use the formula project value plus approved extras, minus real delivery costs. Then inspect the causes: revision growth, unbilled time, material changes, pricing assumptions, or delayed approvals. The number is useful only when it leads to a decision.