Revenue tracking and inputting billing records are significant points of focus for many Practifi firms. To make this process more seamless and simple, users can leverage the Profitability section on a Client's entity record. This feature includes additional tabs to cover three kinds of profitability measurement for the cost of time across clients, overall asset revenue and historical installment records.
- Profitability Analysis
- Activating the Profitability Section
- Defining Profitability
- Reporting on Client Profitability
Tracking servicing costs using Tasks and Events has been a long-standing feature in Practifi, but with the enhanced historical revenue tracking and revenue projection capabilities included in our Barolo release, it becomes possible to understand precisely who your most and least profitable clients are.
We've included some enhancements to bring these disparate data points closer together:
- A dedicated section on Client record pages includes each set of profitability inputs as its own tab, meaning you can quickly switch between them.
- A report that takes full advantage of Salesforce's powerful Report Builder to bring costs, historical revenue and projected revenue across your client book into a single chart or table.
Activating the Profitability Section
A Practifi Administrator will need to add the Additional Features - Profitability permission set to your firm's various permission set groups. Users in these groups will begin to see Profitability appear as a section in the navigation panel on Client record pages.
To add the Additional Features - Profitability permission set, the administrator will need to do the following:
- Navigate to the Salesforce Setup page by clicking the gear icon in the upper right-hand corner of the page (represented by ) and select Setup.
- Use the Quick Find on the left-hand side to search "Permission Set Groups" and select the Permission Set Groups option within the Users menu.
- Choose the specific Permission Set Group you would like to be able to view the Profitablity menu, and then click the Permission Sets in Group hyperlink provided on the new page.
- Select the Add the Permission Set button.
- Check the box for "Practifi - Additional Features - Profitability", then click the Add button.
- Finally, select the Done button.
Please note: Once the permission set has been added, users may need to log out and back into their Practifi instance to see the new Profitability section.
This process will need to be repeated for every group that you would like to have access to this menu item.
To allow teams to define profitability in multiple ways, Practifi has provided increased flexibility for organizations to review metrics in the Profitability menu. The section consists of three tabs:
- The Time & Cost tab displays a list of all the client's Tasks and Events in reverse-chronological order, including Time Logged (minutes) and Cost as list columns.
- The Asset Revenue tab displays a list of all the client's active Assets that are related to Services and contain Annual Revenue information.
- The Installments tab displays a list of all the billing records related either to the client, one of their Services, or one of their Assets. This section only appears if you've enabled the Installments feature for your users. To learn more about Installments, please review our Understanding Installments article.
Reporting on Client Profitability
Salesforce's reports and dashboards give you serious power and flexibility to create your own analytics solution for profitability analysis. To help get you up and running, we've created a sample report that uses the joined reports feature to bring all the disparate elements of profitability analysis into a single location.
The report - named Profit by Advisor & Segment Last 12 Months - displays several measures grouped by Client Name, Client Segment and Advisor:
- The Time Logged and Cost for all Tasks & Events created during the last 12-month period.
- The total value of Installments created during the 12-month period and the resulting Gross Profit (Installment Value minus Cost) and Gross Margin (Gross Profit divided by Installment Value, as a percentage).
- The total Annual Revenue of active Assets projects the most recent revenue inputs across a 12-month period, which provides a like-for-like comparison with the historical Cost and Installment values used by the report. Annual Revenue is used to calculate Projected Profit (Annual Revenue minus Cost) and Projected Margin (Projected Profit divided by Annual Revenue, as a percentage).