Want to know which clients and contracts bring in the most revenue? The Client Profitability Report is here to help. This report gives you a clear picture of your revenue, profit margins, and resource allocation, so you can make smarter business decisions. Let’s dive into how to access and use it!
To access the Client Profitability Report,
Navigate to Modules > Reports > Profitability Report
By default, only users with the “MSP admin” role can access these reports.
You can choose whether the report should be calculated based on items sent to the billing queue or those that have already been invoiced by clicking on the Settings icon.
📝Note: This report is only available as a default report and cannot be customized.
4. You can either set the timeframe to be last year or the current year.
What’s Inside the Report?
The Client Profitability Report is split into three main sections:
Revenue Overview
Client Revenue
Contract Revenue
Revenue Overview
This section gives you a bird’s-eye view of your revenue with metrics like:
MRR (Monthly Recurring Revenue): Represents the total recurring revenue generated in a single month. Please note that this includes all the active contracts in that month even if they are not billed yet.
How it’s calculated: Sum of all the client's recurring revenue in that month
ARR (Annual Recurring Revenue): Calculated as MRR × 12 to provide an annualized revenue forecast.
Overall Earnings: Total revenue from recurring contracts and others will be listed here.
How it’s calculated: Overall Earnings = The sum of all the client’s revenue from January of the current year to the current month.
Client Revenue
Want to see which clients are the most (or least) profitable? This section is for you. The Client vs Profit Chart breaks down how much revenue each client contributes, the associated profit, and the hours spent servicing them. This visual representation makes it easy to identify which clients are the most (and least) profitable.
Client Profitability Metrics: Below the chart, you’ll see a ranked list of the Top 10 and Least 10 Clients based on profitability, helping you pinpoint your star performers.
Contract Revenue
The Contract Revenue section mirrors the structure of the Client Revenue section but focuses on individual contracts instead.
The Contract vs Profit Chart provides a detailed breakdown of revenue, profit, and hours spent on each contract. This is particularly useful for evaluating which contracts are driving your business forward and which ones may require renegotiation or adjustment.
Contracts Profitability Metrics: Similar to the Client Revenue section, you’ll also find a ranked list of the Top 10 and Least 10 Contracts and an Effective Contract Rate metric, which calculates the revenue generated per hour for each contract.