Direct costs
Traced to each product or project.
All management reporting & budgeting services
Management Reporting & Budgeting
Cost and Product Profitability
FinAura allocates your costs to the products, projects, customers or locations that cause them, on a basis you can defend, and reports the profit of each. The result shows which lines carry the business, which drain it and where cost reduction or a price change would have the most effect.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Cost and Product Profitability Covers
Profit by line, not just in total.
Overhead allocation
On drivers that reflect real use.
Profit by line
Products, projects, locations.
Cost trends
Inputs that are rising fastest.
Loss-makers
Identified with options.
Monthly view
Added to the MIS.
How the month runs
How It Works
Trace, allocate, report, act.
Step 1
Trace
- Direct costs
- Bills of materials
- Time records
Step 2
Allocate
- Drivers chosen
- Overheads spread
- Basis documented
Step 3
Report
- Profit by line
- Ranking
- Trends
Step 4
Act
- Prices
- Mix
- Costs
Your part
What We Need From You
- 01Sales by product, project or location
- 02Cost records and bills of materials
- 03Time or usage data
- 04Your view of how costs behave
Our part
What You Get
- Profit by product, project or location
- A defensible allocation basis
- A ranked list of loss-makers
- A monthly profitability view
A common question
Why allocate overheads at all?
Because shared costs like rent, salaries and logistics are not used evenly. A product that looks profitable on direct costs may consume a large share of warehouse space or staff time.
Allocating on drivers that reflect real use shows the true profit of each line, which is what pricing and mix decisions need.
See unit economicsProfitBy line, ranked
AllocationOn real drivers
CostsDirect and shared
Who it is for
Who It Is For
Manufacturers
Many products, shared plant.
Project businesses
Construction, IT, agencies.
Multi-location retail
Store-level profit.
Distributors
Brand and category margins.
The rules, in plain English
What the Law Asks of Your Books
Companies Act, 2013
Section 128
Every company keeps books of account that give a true and fair view of its affairs, at its registered office or another place the Board decides, and preserves them for at least the eight financial years before the current one.
Official source: mca.gov.inCompanies (Accounts) Rules, 2014
Rule 3
Books kept electronically must stay accessible in India at all times, with a daily back-up on servers physically in India. For financial years starting on or after 1 April 2023, the accounting software must keep an audit trail of every change that cannot be switched off.
Official source: mca.gov.inCGST Act, 2017
Sections 35 and 36
Every GST-registered business keeps its accounts and records at its principal place of business and retains them for 72 months from the due date of the annual return for that year, or longer while an appeal or proceeding is open.
Official source: cbic-gst.gov.inIncome-tax law
Books and tax audit
Businesses and professions above the prescribed limits must keep books of account, and a tax audit follows above further limits. The limits change from time to time, so we confirm which apply to you before the year starts.
Official source: incometax.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Cost and Product Profitability: Questions, Answered
What is product profitability analysis?
Working out the profit each product earns after its direct costs and a fair share of overheads.
Is this the same as cost audit?
No. Cost audit is a statutory requirement for specified industries. This is management analysis for decisions.
How do you choose allocation drivers?
From how costs are actually used: space for rent, time for staff, volume for logistics, agreed with you and documented.
Can project profitability be tracked monthly?
Yes, with project codes in the books and time records where people work across projects.
Often Taken Together
All 9 Management Reporting & Budgeting services01Management Reporting & BudgetingUnit Economics and ProfitabilityProfit by product, project, customer or location, so you know where the money is actually made.02Management Reporting & BudgetingMonthly MIS ReportingA management information report you can read in ten minutes: P&L, cash, receivables, payables and the KPIs that matter in your business, with commentary.03Accounting & FinanceVirtual CFOA Chartered Accountant reading your numbers, planning cash and guiding decisions.04Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.