We all know the value of reports in ArchiOffice when it comes to maintaining your firm’s health. After all, they give you a picture of what you’ve accomplished, where you are, and what’s to come. However, reports don’t do much good if you’re not regularly monitoring them. It’s hard to make change if you can’t measure it! That’s why we’ve put together this list of the top 10 reports in ArchiOffice to run quarterly, if not more often.
Our first six reports relate to income and revenue, which are crucial to check quarterly—although ideally, monthly—to make sure that your cash flow is steady and everything is going according to plan…
1. Accounts Receivable (A/R)
A/R is the classic workhorse of reports. It’s your end-all, be-all of unpaid invoices and credit memos. You can run your A/R report from any date, which gives you insight into how your A/R aging compares. If you haven’t kept a record of your monthly A/R, for example, you can always run that report now to see how you’ve been performing month-over-month.
You can also sort A/R by principal. It’s often the case that the principal in charge of a project has the greatest leverage when calling in for collections, so this functionality lets you see which principals are doing a good or less-than-satisfactory job in their efforts.
Here’s an extra tip: Within a calendar or fiscal year—or even a month—only about 8% to 18% of your gross billings should be aging. For example, if you bill $1 million a year, your year-end aging shouldn’t ever be more than $180,000. Make sure you pay attention to the columns in the A/R report for invoices past due by 90 days or more—these ones are notoriously hard to collect on.
2. Cash Receipts Year to Date Comparison:
With this report, you can see the overall flow of cash into your company, which has huge implications for the health of your business. If cash receipts aren’t up by at least 8% over last year, generally speaking, your firm isn’t keeping up to pace with rising costs of doing business, costs of living, and so on.
Additionally, the cash receipts year to date comparison report lets you analyze at the project level how the cash received in the current year compares to last year. You’ll then understand which projects bring in more or less money, and will be able to plan accordingly.
3. Billing Summary Report
The billing summary report shows a neat breakdown of all your revenue silos for each project. It lets you instantly see at the project level what your reimbursements income, services income, and so on are. You can earn a considerable amount of revenue through reimbursement markups, but many firms don’t even bother to outline them in their contracts! The billing summary report makes these reimbursements clear, so you pay more attention to this valuable source of income.
4. Detail Bill Report
The detail bill report looks at each invoice but parses out the revenue you earn as basic services, additional services, reimbursables, adjustments, interests, tax total. Unlike the billing summary report, the reimbursable expenses column includes the markup you charge for reimbursements. Furthermore, the detail bill report shows you your invoices in chronological order, which means your can see the trends within each project for how your services are being billed.
5. Cash Flow vs. Revenue Report
This report gives you the power to easily see on a month by month basis what you’ve invoiced. You can review how your collection efforts are going. It includes a revenue to cash ratio column, illustrating what you billed versus what you collected in one number. The closer this number is to 1.00, the better. If the number is below 1, it means you collected more than you were owed for the time period, which is often due to finally getting paid for aged AR that was originally billed in the previous period.
6. Revenue Summary: Top 10
The revenue summary: top 10 report shows you where your revenue is coming from. You can identify growth-driving sources, compare sales, check for imbalances, and understand trends. You can even identify your top-performing employees and the revenue attributed to their efforts.
The next two reports relate to business efficiency. These are essential to check regularly, especially considering that most small to mid-size A/E firms don’t give enough considerations to staff productivity and pay rates.
7. Staff Productivity Report
This report gives you a thorough understanding of the relationship between realization and pay rate. To clarify, realization is the percentage of time that employees work that actually manifests in income for your firm. There can be huge discrepancies between employees’ cost rates and billing rates. You should use this report to compare staff productivity—including over various time periods—and to determine ideal billing and pay rates.
8. Profitability Report
The profitability report identifies your profit centers. It’s found in the project report section of ArchiOffice. It illuminates the profitability of projects, and can be run on the cash method of accounting or the accrual method. A benefit of the accrual method, however, is that you can track profitability at the phase level.
You can sort this flexible report by project type, project leader, or principal. Running it by project type illustrates which kinds of projects yield your firm the greatest profits and where they have the highest margins. One more option is to run the profitability report in detail view, where each phase is displayed
The last two reports relate to future planning, which is crucial to the continuing health of your firm…
9. New Business by Project Type
The new business by project type report shows you where you’re winning new business and the profitability of new business. Three sections in this report: compare current YTD invoices vs previous YTD invoices, current YTD costs vs previous YTD costs, and current YTD payroll vs previous YTD payroll. This way, you have a complete overview of your current and and old incoming business.
10. Work in Hand Report
Finally the work in hand report gives you a view of the work your firm is actively doing. It shows active project contract amounts versus the amount of revenue your firm has invoiced for your services, the amount of revenue your firm has invoiced for reimbursable expenses, then total amount invoiced for active projects, all compared to paid, unpaid, work in progress (the potential value of the total current time and reimbursable expenses that are waiting to be invoiced), and value of any unbilled portion of your contract (a.k.a. your backlog). In other words, you’ll see your invoices for active projects versus anything that’s yet to be billed.
If you check these 10 reports regularly, you’ll have a crystal clear picture of the health of your firm. With that knowledge, cash flow, productivity, and profitability should increase in no time.