Metrics give authorities vital information to monitor company performance. Agencies are unlikely to recognize the combination of elements that influence business success or contribute to profitability without those insights. Many agencies occasionally glance at their important metrics, especially smaller ones that are expanding quickly. They do enough to avoid problems, but not necessarily enough to strategically increase growth and profitability. Why? There’s just not much time for other things.
Agency management software can be useful for any agency looking to establish, improve, or track metrics. With Cloud-based centralized agency management software, agencies have a single solution to swiftly and easily measure the KPIs that are most important.
Measuring business performance with agency management software
Let’s take a moment to consider the important metrics. Although profitability is the primary indicator that all agencies should track, there are other factors that affect profitability. Profitability is influenced by a number of elements, including the usage of time, staffing levels, margin size, client retainer health, and expense management.
Real-time insights into these elements are provided by agency management software, which aids in managing overall business performance and profitability. Agency management software assists agencies in measuring important KPIs in four ways:
1. Tracking the margin
With our clients, we discuss time management a lot. This is due to the fact that one of the most important elements affecting an agency’s profit margins is time. An agency either invests time in revenue-generating or cost-incurred operations at any one time. The ability to increase margin increases with the amount of time that may be saved on costly operations. An agency has more room to increase profitability if the margin is higher.
2. Monitoring utilization
Utilization tracking gives information about each team member’s level of productivity. Simply said, billable time is represented by usage. It is the discrepancy between the time an employee actually spends providing client services and the amount of time they have available to work each day.
Utilization planning and tracking are made more accurate by Function Point agency management software. Our technology enables organizations to estimate and plan team productivity in a timely and complete manner. Utilization rates for each employee in minutes may be calculated or edited in four easy steps with our Work Calendar. Our Resource Allocation view makes it simple for agencies to reassign work to team members with available capacity and to detect overallocation in real time. Employee monitoring software such as Efficient Lab and staff usage assessment have never been so quick or easy thanks to built-in time tracking features.
3. Management of expenses
Given the possibility that costs can reduce profitability, expense management is yet another crucial statistic that agencies must track. When done poorly, expense management can result in unexpected expenses and take up a significant amount of agency time. Spreadsheets are typically used by expanding agencies to track their spending. When the expenses are entered into a financial management system, matched to a client, and paid at the end of the month, this frequently results in double entry. This procedure is laborious and prone to human handling faults.
Spreadsheets can go with Function Point agency management software. Expense management is made easier and more efficient with our integrated cloud-based solution. We ensure there are no unpleasant surprises by providing agencies with the real-time capability to precisely track their bottom line and keep an eye on estimates against actuals. With quick and simple invoice production, expenditure management, and payment monitoring, our top-notch QuickBooks® integration offers a comprehensive, uncomplicated accounting solution.
4. Flexibility in reporting
Whether you’re analyzing margin, usage, or expenses, the agency management software’s flexible reporting features are crucial for providing actionable insights that will make your agency profitable. Beyond the box, Function Point agency management software offers strong business intelligence features that collect information from various sources within an agency and display it in clear, graphical representations. Real-time visualizations facilitate stakeholders’ ability to monitor key performance indicators, assimilate important information rapidly, and make well-informed decisions swiftly.
26 pre-built reports are available in our agency management software to assist you in tracking important KPIs in a timely manner. Additionally, our technology makes it simple to customize reports, allowing agencies to measure indicators specific to their industry. Agencies can quickly and easily measure the parameters that are most important to them with Function Point’s agency management software.
