Key performance indicators (KPIs) are one of the most effective ways for businesses to measure their performance. With that information, you can better manage cash flows, growth, and customer satisfaction to maximize profits. However, certain KPIs are more important and relevant to certain industries. For example, professional services firms face specific challenges and realities, and thus need to look at specific performance indicators. A project management solution like JOVACO Project integrated to your Microsoft Dynamics solution provides professional services firms with that visibility.
Top 5 essential KPIs for professional services
A global view of your firm is essential. You will know where to put more effort and when to hire or to look for more business. It also helps with your cashflows and workforce forecasting. An integrated system provides visibility on every aspect of your backlog: your sales pipeline, what has been booked if you have product sales, and your revenue forecast for planned services.
WIP & AR Aging Report
This report lets you see unbilled time versus what you are owed by your clients. It lets you have better control on invoicing and accelerate cashflows by making sure that nothing falls through the cracks. You will have visibility on upcoming revenue and potential issues, allowing you to act on them early on.
Revenue per employee
Your revenue per employee is your total revenue divided by the number of full-time employees. It’s a good metric to know where you benchmark against other firms in your industry. This ratio can vary a lot from industry to industry, but is a good way to track increase or decrease in efficiency. Read more about revenue per employee here.
Days Sales Outstanding (DSO)
DSO represents the number of days from the day you render the service to the day you are paid. For example, if it takes 60 days to invoice after you complete an activity and another 90 days to collect, your DSO would be 150 days. With JOVACO Project, a project is considered a WIP the moment time is entered into the timesheet. As a result, you can benefit from an even more accurate understanding of your DSO.
JOVACO Solutions is a leading ERP and CRM solution provider operating for over 35 years. As a specialist of Microsoft Dynamics business management solutions, we offer a wide range of products and services to meet all the needs of professional services firms and project-based organizations. We also offer specialized project management tools and timesheet add-ons fully integrated to Microsoft Dynamics solutions. Visit our website or contact us for more information.
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