Why the invoiced amount isn't enough
A large invoice for a project that took three times the estimated time can actually be less profitable than a small one for a project delivered quickly and efficiently.
What you need to compare
- The amount actually invoiced on the project.
- The real time invested, not the originally estimated one.
- Extra costs (external collaborators, project-specific tools).
Why it's worth doing periodically
Without this comparison, you risk repeating the same type of undervalued project, believing it's profitable just because the invoiced amount looks good on paper.
Bottom line
Real profitability only shows up when you compare what you collected with what you actually invested, not just with what you estimated at the start. Review finished projects periodically, not just when something obviously looks wrong.