This portion of the daily XRay report gives you an estimate of where you WOULD “finish the month” if this were the last day of the month (i.e. you do not sell or perform any additional service that has not already been recorded). As is the case is all XRay reports, the figures estimated are broken into various components (detailed below).
WHY IS THIS IMPORTANT?
This gives you a gauge of your accomplishments towards your goal as of TODAY. This is important for two reasons:
- The earlier you know, the earlier you can take corrective action to address the problem or capitalize on the opportunity.
- If you have an unexpected event (say, an engineer has appendicitis and will be out the rest of the month), you need to know where you stand TODAY and factor in the reduced service hours (and revenue) for the remainder of the month.
Contr Margin – Contribution Margin (Revenue less direct costs) as of today. Note that the “ESTIMATED Close” figure reflects work that you have ALREADY performed (even if you have not yet billed the client for it). No additional product or services sales are forecasted in this figure.
Revenue – Sales revenue accrued thus far this month (billed and un-billed). “ESTIMATED Close” figure reflects work that you have ALREADY performed (even if you have not yet billed the client for it). No additional product or services sales are forecasted in this figure.
Cost – Direct costs accrued thus far this month. 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 based on service hours as of today. This is calculated by dividing your estimated Contribution Margin divided by the total number of hours your engineers have already worked 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 CM $ – This is the contribution margin you have received for Fully Managed (flat fee for unlimited time) contracts this month.
Mgd Agr Hours – The number of hours that you have already provided for your Fully Managed clients this month.
Mgd EHR – Effective Hourly Rate for Fully Managed Services (Fully Managed Service Revenue divided by engineering hours spent on fully managed clients) as of today.
Prepaid $ – Revenue that you have received this month for service contracts that have a “limited” number of hours included.
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 $ – This field shows the amount of “time-and-materials” revenue that you have earned as of today (billed and un-billed).
T&M Hours – Number of hours of “time-and-materials” work that your engineers have performed as of today.
T&M EHR – Effective Hourly Rate of “time-and-materials” services that you have provided as of today.
Product CM$ – Contribution Margin (revenue less direct costs) that you have earned on products sold this month as of today (billed or un-billed).
Product Revenue – Sales Revenue on products sold this month as of today (billed or un-billed).
Paid – The amount that you have already received in payment from clients this month as of today.