Consolidated client profitability reporting

Generate client profitability reporting across offices

Agencies with multiple business entities or subsidiaries can analyze the actual cost of servicing clients by including overhead costs across all offices. This enables the business to get an accurate view of the financial impact of client on your business. 

Overhead costs are the indirect costs associated with running a business. When you have multiple offices supporting the agency, but not directly working on specific clients, the costs incurred by these offices are still considered "overhead". By having the option to include these offices in client profitability reporting, agencies get a more accurate picture of the true cost of servicing a client. 

Before you get started

• To access all client profitability reports in Accountability, your User Access Group needs to have access to 'GL Client Profitability Reports'. 
• To use Employee Cost Rate or Time Entry Cost Rate for direct labor calculation, your User Access Group needs to have access to 'Employee Cost Rate'.
• Your Employee record needs to have access to the offices you'd like to include in the consolidated client profitability report. 
• Exclude any non-operating GL accounts that you don't want to include the indirect overhead calculation.  

Client profitability report basics

Navigate to Accounting>General Ledger>General Ledger Reports and expand the Client Profitability Reports section.

Select Client Profitability Report and follow the detailed steps here. 

Regardless of whether you're running the report for a single office or multiple offices, the following sets of data are required: 

• Revenue and direct costs associated with a client
  • Direct labor:  Timesheet hours multiplied by the cost rate. Agencies have the option to choose which cost rate to use: 
    • Time entry cost rates: Cost rate 
    • Employee cost rates:  Current cost rate from the Employee record.
    • Indicative cost rates:  Blended cost rate defined for a specific role (aka task type-level cost rate).
  • Direct expenses:  Expense claims or external supplier invoices posted to the client job.
• Overhead / indirect costs: The allocation of overhead costs can be based on percentage of revenue or labor by client.  
  
  

Consolidated view 

To run a consolidated client profitability report: 

1. Select  the offices or entity to include the report.  
2. Uncheck 'Separate Report for Each Office?' to combine the data for all selected offices in one report.  When this option is unchecked, the report will combine the revenue and direct costs for all clients across all offices.  It will then allocate the indirect costs for all offices to all the clients accordingly.
3. When running a consolidated view of the report, you are required to specify the Report Currency to use.
4. Select the Current Exchange Rate or Consolidated Exchange Rates to convert all foreign currency amounts into the selected report currency. 

Multi-office view

To run a multi-office report: 

1. Select  the offices or entity to include the report.  
2. Check  'Separate Report for Each Office?' 
3. By default, the report will use the office home currencies.  You also have the option to convert all amounts to a specific Report Currency.
4. If you chose the option to convert the amounts to a specific report currency, use the Current Exchange Rate or Consolidated Exchange Rates .