{"id":38580,"date":"2020-02-26T13:57:31","date_gmt":"2020-02-26T09:57:31","guid":{"rendered":"https:\/\/www.msp360.com\/resources\/?p=38580"},"modified":"2021-01-18T17:31:27","modified_gmt":"2021-01-18T13:31:27","slug":"msp-financial-kpis","status":"publish","type":"post","link":"https:\/\/www.msp360.com\/resources\/blog\/msp-financial-kpis\/","title":{"rendered":"Introduction to Financial KPIs for MSPs"},"content":{"rendered":"

If you're an MSP, you're probably familiar with the concept of Key Performance Indicators, or KPIs, for monitoring the management of software and systems.<\/p>\n

But the usefulness of KPI is not limited to the technical realm. Another kind of KPI -- ones based on financial data -- also can play a critical role in monitoring and managing the financial performance of your MSP business. Financial KPIs help MSPs know how many members they need to add to their team, how to set sales commissions, which tools or software to use, and much more.<\/p>\n

Keep reading for a primer on financial KPIs and how to use them to help grow and sustain your MSP business.<\/p>\n

Main Financial MSP KPIs<\/h2>\n

Let's start with a list of the main KPIs that you should track for an MSP business. (This list doesn't include every KPI out there; we\u2019ve limited it to those that are most important for MSPs.)<\/p>\n

\n
\n
FREE WHITEPAPER<\/div>\n
4 Essential MSP Business KPIs to Track<\/div>\n
Define the potential issues, find most prospective growth factors, and cut ineffective operations.<\/div>\n\"CTA\"<\/a><\/span><\/span>\n<\/div>\n
\n

\"Whitepaper<\/p>\n<\/div>\n<\/div>\n

Revenue<\/h3>\n

Revenue refers to the total amount of income generated by your company. In other words, it's how much money you collect from selling your products and services. (It doesn't reflect the profit you make; for more on where profit fits in, see the \"margin\" section below.)<\/p>\n

Beyond tracking the revenue as a KPI, you can also track these revenue-related KPIs:<\/p>\n