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Profitability Overview

Rize helps you track profitability by calculating revenue, costs, and profit for your clients, projects, and team members. Understanding how your billing system works is key to making informed business decisions.

How Profitability Works​

Profitability in Rize is calculated using three core components:

  • Revenue: Money earned from billable work
  • Cost: Money spent on labor (based on team member cost rates)
  • Profit: Revenue minus cost
Profit = Revenue - Cost

Billing Types​

Rize supports three billing types, each with different revenue calculation methods:

Hourly Billing​

Clients are billed based on the number of hours worked multiplied by an hourly rate. This is the most straightforward billing method.

Example: If you work 10 hours at $100/hour, revenue = $1,000

Retainer Billing​

Clients pay a fixed monthly amount regardless of hours worked. Revenue is recognized daily based on the retainer amount divided by the number of days in the billing period.

Example: A $3,000 monthly retainer = approximately $100/day in revenue

Hybrid Billing​

Clients pay a fixed monthly retainer plus an hourly rate for hours worked beyond an included amount. This combines the predictability of retainers with the flexibility of hourly billing for overage.

Example: $2,000/month retainer with 20 hours included, then $150/hour for additional hours

What Gets Tracked​

Rize automatically tracks profitability at multiple levels:

  • Team Overview: Overall profitability across all clients
  • Client Level: Profitability for each individual client
  • Project Level: Profitability for specific projects
  • Member Level: Profitability contribution by team member

Daily Statistics​

Rize calculates profitability statistics daily, ensuring you always have up-to-date information. These statistics are automatically updated:

  • When time entries are created or modified
  • When billing rates change
  • When retainers are created or updated
  • Through a daily background job that ensures retainer revenue is recognized even on days without time entries

Next Steps​