Do you know your numbers?
You have heard all the common buzz words or descriptions of ways to review your numbers such as KPI's, metrics, benchmarks, GP, DSO, EBIDA, etc. Hearing the buzz words is one thing. Knowing what the measurements should be for your specific business is another. And then being able to produce your numbers and know that they are right is another. What if you know all that…. but your numbers are not in line with where they should be, what do you do?
A major advantage of partnering with VPA is our expertise in helping technology companies obtain and sustain high financial performance. We can do this through such things as evaluating your current performance in comparison to peers and top performers in the industry; identify areas for optimization; develop a plan for improvement; and assist in the implementation of the plans. We also provide reporting of metrics, analysis and industry benchmark comparisons that give you valuable information you can use to make business decisions. Accurate, timely and easily understood financial and management reporting is critical to the success any company. This is especially true for a company in a very fast pace, every changing and evolving industry like the technology industry. Partner with VPA to help understand where you are, where you should be and provide the hands-on guidance and advice to get there.
Some examples of areas of financial performance areas we can help with are:
Contract Profitability: We analyze the profitability of your contracts. Finding those specific contracts that are hugely (largely) profitable and analyzing them to determine why. Then evaluating contracts that are not profitable to determine why and make recommendations on how to make them profitable. We would also assist in implementing processes and changes to drive consistently higher profits on all contracts.
Technical Resource profitability: High utilization does not always equate to high profitability of your resources. What is their realization rate? What is their effective rate? What should the numbers be? Know when you can afford to hire additional resources. Know when you are overstaffed or under-performing, and not only know where and why, but also who needs improvements.
Financial Statement Analytics: Using our proprietary financial business models and analytics, we can demonstrate where you are and how you stack up to the industry. Our models go beyond the standard ratio analysis of general industry by focusing on the crucial measurements tailored for Managed Service providers.
Contact us today to see how we can partner with you to improve your financial performance.