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The use of PSA (Professional Services Automation) is on the rise. In fact, 85% of the best-of-the-best Professional Services firms use PSA, and nearly two-thirds have it integrated with the core financial management solution.
According to the latest SPI Professional Services Maturity™ Benchmark Report, PSA solutions yield several core benefits to key operational areas of Services Organizations.
• Finance & Accounting: Seamlessly couple core general ledger, accounts receivable, accounts payable, tax management, fixed assets management, cash management, and payment management accounting functionality with real-time visibility and business insights to drive financial excellence.
• Contract Management: Automate contract renewals through a flexible and powerful process that lets you track renewable assets and maximize renewal revenue.
• Project Management: Enable project managers and team members to collaborate on projects and maintain current and accurate project status at all times, allowing managers to proactively identify and resolve potential issues with each engagement.
• Project Accounting: Connecting project activities with company financials ensures accurate accounting and billing throughout the project lifecycle, streamlines time and expense management and provides extensive reporting capabilities.
• Resource Utilization: Resource Management enables project managers to optimize staffing and utilization by minimizing bench and ensuring that qualified resources are working on the right projects.
• Revenue Recognition: Create specific recognition rules for each product or service you offer, then easily link them to individual line items in customer contracts. Automatically recognize revenue based on predefined schedules or milestones in compliance with ASC 606, IFRS 15 and other standards.
When it comes to managing a business in the Professional Services industry, there’s no shortage of metrics you could use to assess your business performance. But just because you can measure over 50 metrics, doesn’t mean you should. Most executives only need to look at billable utilization as a primary reason to select a PSA solution. Just start to multiply what a 3% improvement in utilization means to revenue growth. For a 100-person organization, 3% translates to 6,000 more billable hours per year resulting in better gross margins.