Finance for Professional Service Providers
Managing Productivity and Profitability
Professional service providers come to us trying to better understand their labor force productivity and customer profitability. The question we are often asked is “when is it the right time to hire someone?”
Watch this video to see how our subscriptions answer questions like that and much more.
Increase Customer Profitability
Increased profit hinges on knowing your customer profitability.
We measure customer profitability as total revenue for a customer, less labor costs and out of pocket expenses. Labor costs is where many of our customers get tripped up… they have problems properly calculating and tracking it.
We determine a fully loaded labor hourly rate for each employee, then use the Projects feature in QuickBooks Online to give you labor and out of pocket expenses by customer.
You'll be able to evaluate which customers are generating the most profit, which customers need profit improvement, and which ones you may need to terminate.
Improve Labor Productivity
Track the right labor metrics to optimize your workforce
Professional service providers are constantly balancing demand for their services with the supply of talent available to meet it. When is the right time to hire someone?
We track and measure various labor metrics to show you how your workforce impacts your bottom line:
- Utilization Rate
- Billable / non-billable FTEs
- Revenue per billable hour worked
- Loaded labor cost per billable hour worked
- Fully loaded labor rate per hour