Revenue Report
What is the Revenue Report and How is it Used?
The Revenue Report shows changes in revenue over time. The right side of the report looks at the entire revenue stream and provides a month over month change of recurring, non-recurring and total revenue. The left side shows individual client change in recurring revenue (MRR) at two points of time. Filters can be set to look at labor agreements, product agreements, or agreements that combine labor and product. The changes are broken down into four components: clients that grew, clients that declined, new clients and lost clients.
The value of the report is to look at growth and decline over a period of time, whether for the entire company or individual clients.
Total Revenue over Time (right side - chart)
The filter gives a time span for the graph. In the chart below, the trailing 12 months are selected which shows 12 monthly cycles.
MSPCFO looks at recurring revenue on a monthly basis. Each group of bars represent one month's revenue. If recurring invoices are for longer periods of time (quarterly, yearly for example), the system breaks down the time into monthly amounts.
1. Blue Bar - recurring revenue: FFA, L&S, or BT Recurring
2. Green Bar - non-recurring revenue: T&M, BT One Time, BT Recurring with Rollover, Projects
There is usually more variability with this type of revenue
3. Orange Bar - total of 1 and 2.
In the legend under the x-axis (Recurring, Non-Recurring, Total) you can click on the specific legend component turn on of off each type. In the example below, only the Recurring revenue is visible.
MMR Change (left side - tables)
The left side of the report shows growth, decline, new clients and lost clients for recurring revenue in three different categories:
MRR Labor -A recurring agreement with labor included.
Recurring Products - All products included in a recurring agreement. The agreement is either a stand-alone agreement for products or contained in a labor and product agreement.
The tables look at two different points in time (by month) so that a comparison can be made of growth or decline for specific clients in their recurring revenue.
FILTERS
Filters are set at the top.
The (1) Threshold $ amount will aggregate all smaller clients that fall under this amount . The clients appear in one line under 'Other'. The threshold can be lowered or raised to see more individual smaller clients or less.
Choose the two points of time to be compared: (2) beginning month; (3) end month. These can be consecutive months or a range of months. The program will look at the first month and last month for growth or decline; and will analyze if the client had recurring revenue in the beginning month and end month to report new client or lost client.
Examples of time ranges - the two previous months to see the recent changes in recurring clients; the first month of the current year and the last complete month recurring revenue was invoiced - to see growth and decline for the current year. In the example below, where 'Previous Quarter was selected, the tables will show the change in revenue over the quarter.
Choose the type of recurring revenue to show - select one type or a combination: (4) MRR Labor; (5) Recurring Products
Clients are classified based on recurring revenue at the report’s Start and End Dates:
- If a client has no recurring revenue in the Start Month but does in the End Month, they are marked as a New Client.
- If a client has recurring revenue in the Start Month but none in the End Month, they are marked as a Lost Client.
To drill down further, click on the Client name to look at the Client P&L.
An example of clients who are in the above tables (highlighted).
| Client Name | Start Month Revenue (2016-02) | End Month Revenue (2016-03) | Change | |
|---|---|---|---|---|
| Grow | Client 58 | $1,242 | $422 | $820 |
| Shrink | Client 29 | $933 | $807 | ($126) |
| Added | Client 133 | - | $319 | $319 |
| Lost | Client 20 | $422 | - | ($422) |
0 Comments
Add your comment