Client Profitability
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      2. Reporting
      3. Client Profitability

      Client Profitability Summary

      On-demand insight on how profitable your clients are

      What is it?

      The Client Profitability Summary is an on-demand dashboard that provides instant visibility into client profitability metrics without running a full report. It displays key financial data including Total Billings, Revenue, Direct Costs (Labour, Overheads, Expenses), Gross Profit, Indirect Allocations, and Profit percentages across all clients and offices.

      Why does it matter?

      Understanding client profitability is essential for strategic decision-making:

      • Identify your most and least profitable clients at a glance
      • Spot troubling trends in client profitability before they impact your bottom line
      • Make data-driven decisions about resource allocation, pricing strategies, and client retention
      • Save time with instant access to profitability metrics without waiting for month-end reports
      • Customize your analysis using flexible filtering options to view the data most relevant to your needs
      • Compare performance across different offices, time periods, and calculation methods

      How does it work?

      Accessing the Summary

      1. Navigate to: Accounting > General Ledger > General Ledger Statements & Reports
      2. Locate the Client Profitability Summary option

      Setting Parameters

      The summary includes several filtering options to customize your view:

      Basic Filters

        • Client: Search for and filter on specific clients, client types, client managers, and other client record attributes
        • Offices/Entities: Choose specific offices or entities, i.e., office groups;  You can also choose whether to have an aggregated report across offices or break out the report by office
        • Department: Filter by specific department.  This is only relevant for agencies that strictly post all transactions at the department level. 

      Time Period Filters

        • From/To Accounting Year/Month: Select your desired date range (e.g., January-March 2025)

      Display and Calculation Options

        • Group By: Choose to group by Client or Master Client
        • Client Display:  Break out the report by Client (default) or by any of the available Client Custom Fields for your agency, e.g. Reporting Client
        • Calculate Overhead Allocation based on:
          • Client % of Direct Labour
          • Client % of Revenue

      Indirect Overhead Calculation Method  

      Choose between two methods for calculating indirect overheads:

        • Month Range: Calculates based on the sum of values across the entire selected period
        • Monthly: Performs calculations on a month-by-month basis using monthly revenue or labor costs (NEW)

      Cost Rate and Currency Options

        • Select the source of cost rates: Time entry, Employee current, or Task Type
        • Choose currency display options

      General Ledger Account

      Use this filter to exclude GL accounts for non-operational costs, if needed.  You can also permanently exclude these accounts. Learn more here. 

       

      Generating and Using the Summary

      1. Set your desired parameters using the filters
      2. Click the "GET DATA" button to load or refresh the summary
      3. Review the results in the detailed table
      4. Export to Excel, view as a Bar Chart, Preview, or Print using the buttons in the top-right corner

      Drill-down into Client Details 

      Click on the Client hyperlink to see the underlying details for each line.  The detailed view is broken out as follows: 

      • Billings with a further breakout of all Billings accounts, if applicable 
      • Revenue with a list of all your Revenue GL accounts
      • Expenses broken out as follows
        • Direct Expenses with Direct Labour broken out by Department and Employee
        • Indirect Expenses with the indirect labour and overhead allocation calculated by the system 

      Interpreting Results

      • Higher values in "Profit As % Revenue" indicate more profitable clients
      • Negative values in "Gross Profit" identify clients where costs exceed revenue
      • The "Indirect Labour & Overhead Allocation" column shows distributed overhead costs

      Inter-office transactions: 

      The hours for employees outside the client's office are automatically included in the direct labour cost calculations. 

      To ensure that salary allocations are accurate on this report, use the Interoffice Time Report to get the data and record the necessary re-charge transactions. 

       

      Tips for Effective Use

      • Start with a broader view, then filter down for detailed analysis
      • Compare profitability across different offices and time periods
      • Review clients with negative profitability to identify improvement opportunities
      • Use the new monthly calculation option for more accurate overhead allocation in seasonal businesses or when there's a new client