for ConnectWise

XRay Daily Anticipated Close

PURPOSE

This portion of the daily XRay report gives you an estimate of where you will “finish the month”, given both the current work done so far this month, plus projecting that you will CONTINUE this same level of activity through the remainder of the month.  As is the case is all XRay reports, the figures estimated are broken into various components (detailed below).

 

WHY IS THIS IMPORTANT?

It is important to know how you will finish this month as early in the month as possible.  This is important for two reasons:

  1. The earlier you know, the earlier you can take corrective action to address the problem or capitalize on the opportunity.
  2. If your corrective actions are not effective, it is important that you take a longer-term perspective on any organizational changes that may need to be put in place in the event of disappointing organizational results.

Report Items

Contr Margin – Contribution Margin (Revenue less direct costs) estimated for month-end.  Estimates assume that you continue to provide T&M, Prepaid and Managed Service services at the same rate throughout the end of the month.  No additional product sales are forecasted in this figure.

Revenue – Sales revenue estimated for month-end.  Estimates assume that you continue to provide T&M, Prepaid and Managed Service services at the same rate throughout the end of the month.  No additional product sales are forecasted in this figure.

Cost – Direct costs estimated for month-end.  Estimates assume that your engineering staff is paid on salary, so the majority of the estimated costs are based on fees you pay third-parties for hardware, software, and SaaS services.

EHR – Effective Hourly Rate estimated for month-end.  This is calculated by dividing your estimated Contribution Margin divided by the total number of hours your engineers are estimated to provide this month.  (EHR is based on Contribution Margin rather than Revenue so that EHR is not skewed by large hardware revenue that are accompanied by relatively small contribution margin.)

Mgd Agr Hours – Estimate of the number of hours that you will provide for your Fully Managed clients this month.

Mgd EHR– Estimate of Effective Hourly Rate for Fully Managed Services (Fully Managed Service Revenue divided by engineering hours spent on fully managed clients).

Prepaid Agr Hrs – The number of hours that your engineers have spent servicing agreements that are pre-paid (including fixed fee, monthly block, annual block, etc.)

T&M Rev $ – Given the current activities this month, and projecting that same level of activity through month-end, this field shows the amount of “time-and-materials” revenue that you will have at the end of this month.

T&M Hours – Given the current activities this month, and projecting that same level of activity through month-end, this field shows “time-and-materials” hours that you will have provided at the end of this month.

T&M EHR – Given the current activities this month, and projecting that same level of activity through month-end, this field shows the Effective Hourly Rate of “time-and-materials” services that you will have at the end of this month.