Top 5 KPIs for Professional Services Firms using Microsoft Dynamics

Key performance indicators (KPIs) are one of the most effective ways for businesses to measure their performance. With that information, you can better manage cash flows, growth, and customer satisfaction to maximize profits. However, certain KPIs are more important and relevant to certain industries. For example, professional services firms face specific challenges and realities, and thus need to look at specific performance indicators. A project management solution like JOVACO Project integrated to your Microsoft Dynamics solution provides professional services firms with that visibility.

Top 5 essential KPIs for professional services

Backlog value

A global view of your firm is essential. You will know where to put more effort and when to hire or to look for more business. It also helps with your cashflows and workforce forecasting. An integrated system provides visibility on every aspect of your backlog: your sales pipeline, what has been booked if you have product sales, and your revenue forecast for planned services.

WIP & AR Aging Report

This report lets you see unbilled time versus what you are owed by your clients. It lets you have better control on invoicing and accelerate cashflows by making sure that nothing falls through the cracks. You will have visibility on upcoming revenue and potential issues, allowing you to act on them early on.

Revenue per employee

Your revenue per employee is your total revenue divided by the number of full-time employees. It’s a good metric to know where you benchmark against other firms in your industry. This ratio can vary a lot from industry to industry, but is a good way to track increase or decrease in efficiency. Read more about revenue per employee here.

Days Sales Outstanding (DSO)

DSO represents the number of days from the day you render the service to the day you are paid. For example, if it takes 60 days to invoice after you complete an activity and another 90 days to collect, your DSO would be 150 days. With JOVACO Project, a project is considered a WIP the moment time is entered into the timesheet. As a result, you can benefit from an even more accurate understanding of your DSO.

Net Promoter Score

NPS measures customer loyalty and their willingness to recommend your firm. There should always be a place for this metric within your organization. It helps you keep a pulse on your firm and where you stand with your customers. Having that information helps you work on improving customer satisfaction. Read more about Net Promoter Score here.

A solution like JOVACO Project integrated to Microsoft Dynamics will give you access to all these metrics. These KPIs for professional services firms will give you complete visibility on all aspects of your organization, all from an integrated platform. In turn, you will have the insights required from a granular or global perspective to help your professional services firm grow. To know how JOVACO Project can help your organization, read our articles Top Challenges for Professional Services Firms with a Matrix Organizational Structure and Top 5 Project Management Features to Look for in a Project Accounting Solution.

By JOVACO Solutions, specialist in Dynamics 365 for professional service firms

About JOVACO Solutions

JOVACO Solutions is a leading ERP and CRM solution provider operating for over 35 years. As a specialist of Microsoft Dynamics business management solutions, we offer a wide range of products and services to meet all the needs of professional services firms and project-based organizations. We also offer specialized project management tools and timesheet add-ons fully integrated to Microsoft Dynamics solutions. Visit our website or contact us for more information.