Profit Drivers for your financial control
Your Revenue Analysis and Revenue KPIs
We analyse your invoices to identify the categories of revenue which reflect your strategy best. The grouping will help us segment your market and propose your first performance indicators.
Revenue / Billed Day
When to use it: constantly, as it will also determine your profit margin per client and per service offered and your strategy
When to ignore it: never
Revenue / Project
When to use it: at the end of the year to check trends, but it does not say much unless your projects are fairly standard
When to ignore it: if you have established a solid reporting of Revenue per Billed Day for all types of services you are offering as you can derive it from there.
Revenue / Client
When to use it: when checking your account management activity and when using different channels of distribution. This indicator is useful when you compare it against the clients’ budgets for your service to check your ‘share of wallet’.
When to ignore it: probably never, as you want to know whether you are growing inside your clients or they are showing signs of slowing down; it forms the basis of client churn calculations and gives you warning signs
When to use it: when someone suggests you should employ more people
Revenue per reference unit used by your market
When to use it: useful to monitor as long as you have access to benchmark information from your partners and competitors
When to ignore it: when you notice that the benchmark information includes too many different variables – different length of courses, different sizes of the group, different type of assignments