The MSP Financial Metrics Dashboard helps you track essential financial metrics to improve decision-making, optimize operations, and boost growth. With insights into revenue trends, client profitability, and workforce efficiency, you can make data-driven adjustments to enhance your services and achieve your business goals.
Before getting started, let’s understand the key metrics included in the Client Profitability and Labour Revenue Reports.
Terms we use
MSP-Related Metrics
Monthly Recurring Revenue (MRR): Think of MRR as your monthly paycheck from all the recurring services you offer, like subscription fees or service agreements. It gives you a clear picture of your predictable income and helps you plan ahead financially.
Year-to-Date MRR (MRR YTD): This is the total MRR you've earned so far this year. It’s like a progress report for your business, helping you spot trends and take action if your numbers aren’t where you want them to be.
Annual Recurring Revenue (ARR): ARR is your MRR multiplied by 12, showing you what your yearly income could look like if things stay steady. It’s great for long-term planning and forecasting.
Revenue from Non-Recurring Contracts: These are your quick wins—project-based jobs or one-off services. This metric shows how much you’re earning from these opportunities and helps balance short-term gains with your long-term recurring revenue.
Effective Rate per Client: Here’s a profitability check: how much are you earning from a client compared to the hours you’ve spent working for them? This metric helps you figure out which clients are the most (and least) profitable.
Effective Rate per Contract: Similar to the client rate, this metric shows how much money a specific contract brings in versus the time spent. It’s all about finding your most efficient agreements.
Client Revenue & Profitability: These metrics help you identify your VIP clients and decide where to focus your energy.
Overall: Total revenue from all your clients since day one.
YTD: This is the money coming in from long-term agreements like subscriptions or maintenance contracts. In simple terms, revenue from all your clients since January 1st of this year. It highlights which services are most popular and gives you ideas on what to expand.
Technician-Related Metrics
Labor and Effective Labor Revenue: Labor revenue is the money you make from services billed by the hour. Effective labor revenue takes it a step further, showing the average revenue per billable hour. It’s a great way to spot which services are pulling their weight and which might need some attention.
Revenue per Technician: Want to know how well your team is doing? This metric shows the average revenue each technician brings in. It’s helpful for identifying your top performers and areas where others might need some support.
Profit per Technician: Average profit generated by each technician after accounting for costs. This metric is all about figuring out how each technician contributes to your bottom line.
Cost per Technician: This tells you how much each technician costs you, including salaries, benefits, and other expenses. By comparing this to their revenue and profit numbers, you can see if you’re getting a good return on your investment.
Technician Utilization: How much of your technicians’ time is actually billable? High utilization is a good sign that you’re using your resources well, while low utilization might mean it’s time to rethink project management or training.