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Encore Strategic Benchmarking provides insight into a company's financial key performance indicators (KPIs) with data derived from expenses, revenue, and employee count. The 16 metrics calculated quarterly and monthly measure overall profitability and the employees' contribution over revenue and net operating income.

All accounts in the Encore Strategic Benchmarking app are classified to include account groups, categories, and subcategories which consist of all accounts that are directly mapped to that specific grouping. This consists of all accounts associated with their parent categories and any nested subcategories. By following this approach, any account that is mapped to the designated group, category, or subcategory, including those mapped to the nested categories and subcategories within the account hierarchy, will be incorporated.

This article shows how the following metrics are calculated:

Product Margin

The Product Margin metric shows a column chart with product margin percentages by quarter and a monthly layout of the selected range. It is product revenue minus product cost of goods sold (COGS) expressed as a percentage of product revenue.

Calculation: (Product Sales - Product COGS) / Product Sales

^{Data Source: Encore mapping}

Account Grouping for Product Margin

Account Category	Account Subcategory
Product Sales	Hardware & Software
Product Sales	Cloud Resale
Product COGS	Hardware & Software Costs
	Cloud Resale COGS
	Special Product 1
	Special Product 2

Percent of Services to Total Revenue

The Percent of Services to Total Revenue metric shows a column chart with the percentage of services to total revenue frequency by quarter and a monthly layout of the selected range. This is the total service revenue expressed as a percentage of total revenue.

Calculation: Service Revenue / Total Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-26-56.png

^{Data Source: Encore mapping}

Account Grouping for Percent of Services to Total Revenue

Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Service Gross Profit Margin

The metric Service Gross Profit Margin benchmark displays a column chart with service gross profit margin percentages by quarter and a monthly layout of the selected range. It is service revenue minus service cost of goods sold (COGS) expressed as a percentage of service revenue.

Calculation: (Service Revenue - Service COGS) / Service Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-28-45.png

^{Data Source: Encore mapping}

Account Grouping for Service Gross Profit Margin

Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

Service COGS

Account Category	Account Subcategory
Recurring Service COGS	Managed Services Costs
	BCDR
	Security Costs
Labor Costs	Technician Salaries
	Technician Payroll Taxes
	Technician Benefits
	Project Costs
VOIP Costs
Hardware As A Service Costs

Percent of Recurring Revenues to Total Service Revenue

The Percent of Recurring Revenues to Total Service Revenue metric has a column chart showing the percentage of recurring revenues to total service revenue frequency by quarter and monthly layout of the selected range. It is recurring service revenue expressed as a percentage of total service revenue.

Calculation: Recurring Service Revenue / Total Service Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-31-57.png

^{Data Source: Encore mapping}

Account Grouping for Percent of Recurring Revenues to Total Service Revenue

Recurring Service Revenue
Account Category Account Subcategory
Recurring Service Revenues

Managed Services
BCDR
Security

Total Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware as a Service Revenue

Percent of Project and Installation Revenue to Total Service Revenue

The metric Percent of Recurring Revenues to Total Service Revenue has a column chart showing the percentage of recurring revenues to total service revenue frequency by quarter and a monthly layout of the selected range. It is recurring service revenue expressed as a percentage of total service revenue.

Calculation: Project Revenue / Total Service Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_20-42-49.png

^{Data Source: Encore mapping}

Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue

Project Revenue
Account Category Account Subcategory
Labor-Related Revenue
Project Revenues

Total Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

Percentage of Other Non-Recurring Revenue to Total Service Revenue

The Percent of Service Salaries to Service Revenue metric is a column chart showing the percentage of service salaries to service revenue frequency by quarter and monthly layout of the selected range. It is service salaries expressed as a percentage of total service revenue.

Calculation: Other Non-Recurring Revenue / Total Service Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-17_22-9-59.png

^{Data Source: Encore mapping}

Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue

Other Non-Recurring Project Revenue
Account Category Account Subcategory
Labor-Related Revenue

Block Hour Revenue
Time & Materials
Project Revenues
VOIP Revenue

Hardware As A Service Revenue

Miscellaneous Income

Total Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

Percent of Service Salaries to Service Revenue

The Percent of Service Salaries to Service Revenue metric is a column chart showing the percentage of service salaries to service revenue frequency by quarter and a monthly layout of the selected range. It is service salaries expressed as a percentage of total service revenue.

Calculation: Technician Salaries / Service Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-17_22-10-43.png

^{Data Source: Encore mapping}

Account Grouping for Percent of Service Salaries to Service Revenue

Technician Salaries
Account Group Account Category Account Subcategory
COGS - Cost of Goods Sold
Labor Costs
Technician Salaries

Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

Sales Salaries and Commissions as a Percentage of Revenue

The Sales Salaries and Commissions as a Percentage of Revenue metric displays a column chart with sales salaries and commissions as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is sales salaries plus commission expressed as a percentage of total revenue.

Calculation: (Salaries + Commissions) / Total Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_20-44-39.png

^{Data Source: Encore mapping}

Account Groupings for Sales Salaries and Commissions as a Percentage of Revenue

Salaries + Commissions
Account Category Account Subcategory
Sales Expense

Salaries
Commissions

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Advertising and Marketing as a Percentage of Revenue

The Advertising and Marketing as a Percentage of Revenue metric shows a column chart with advertising and marketing as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is advertising expense plus marketing expense expressed as a percentage of total revenue.

Calculation: (Advertising + Marketing) / Total Revenue

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-48-8.png

^{Data Source: Encore mapping}

Account Grouping for Advertising and Marketing as a Percentage of Revenue

Advertising + Marketing
Account Group Account Category Account Subcategory
COGS - Cost of Goods Sold
Sales Expense
Marketing
Expenses
Advertising

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Admin as a Percentage of Revenue

The Admin as a Percentage of Revenue metric has a column chart showing admin as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is admin expenses expressed as a percentage of total revenue.

Calculation: Total Admin Expenses / Total Revenue

^{Data Source: Encore mapping}

Account Groupings for Admin as a Percentage of Revenue

Total Admin Expenses
Account Group Account Category
Expenses
Salaries - Admin

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Gross Profit After Sales Expense

The Gross Profit After Sales Expense metric shows the Gross Profit After Sales Expense frequency by quarter and a monthly layout of the selected range. It is the Total Revenue less the Total Cost of goods sold minus sales expenses.

Calculation: (Total Revenue - COGS) - Sales Expenses

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_20-39-13.png

^{Data Source: Encore mapping}

Account Groupings for Gross Profit After Sales Expense

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

COGS

Account Group	Account Category	Account Subcategory
COGS - Cost of Goods Sold	Product COGS	Hardware & Software Costs
		Cloud Resale COGS
		Special Product 1
		Special Product 2
	Recurring Service COGS	Managed Services Costs
		BCDR
		Security Costs
	Labor Costs	Technician Salaries
		Technician Payroll Taxes
		Technician Benefits
		Project Costs
	VOIP Costs
	Hardware As A Service Costs
	Sales Expense	Salaries
		Commissions
		Marketing
		Travel and Lodging
		Training
		Other

Service Revenue per Service Person

The metric Service Revenue per Service Person is a column chart showing the frequency of Service Revenue per Service Person by quarter and a monthly layout of the selected range. It measures service revenue generated by each service person.

Calculation: Service Revenue / Service Person Count

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-51-13.png

^{Data Source: Encore mapping for Service Revenue and Encore Settings for Service Person Count}

Account Grouping for Service Revenue per Service Person*

Service Revenue

Account Category	Account Subcategory
Recurring Service Revenues	Managed Services
	BCDR
	Security
Labor-Related Revenue	Block Hour Revenue
	Time & Materials
	Project Revenues
VOIP Revenue
Hardware As A Service Revenue

*Service Person Count represents the calculated average of Service Employee Headcount from the Encore Benchmarking Employee Headcount Form within the specified reporting period.

Revenue per Employee

The metric Revenue per Employee is a column chart showing Revenue per Employee frequency by quarter and a monthly layout of the selected range. it is the ratio that roughly measures revenue generated by each employee.

Calculation: Revenue / Employee Count

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-52-17.png

Data Source: Encore mapping for Revenue and Encore Settings for Employee Count

Account Grouping for Revenue per Employee

Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Employee Count represents the calculated average of Service Employee, Sales, and Admin Headcount totals from the Encore Benchmarking Employee Headcount Form within the specified reporting period.

Net Operating Income

The metric Net Operating Income shows net operating income percentages by quarter and a monthly layout of the selected range. It is Total Revenue minus Cost of Goods Sold(COGS), Expenses, Depreciation, and Amortization.

Calculation: Total Revenue – (COGS + Expense - Taxes)

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-17_22-12-9.png

^{Data Source: Encore mapping}

Account Groupings for Net Operating Income

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

COGS

Account Group	Account Category	Account Subcategory
COGS - Cost of Goods Sold	Product COGS	Hardware & Software Costs
		Cloud Resale COGS
		Special Product 1
		Special Product 2
	Recurring Service COGS	Managed Services Costs
		BCDR
		Security Costs
	Labor Costs	Technician Salaries
		Technician Payroll Taxes
		Technician Benefits
		Project Costs
	VOIP Costs
	Hardware As A Service Costs
	Sales Expense	Salaries
		Commissions
		Marketing
		Travel and Lodging
		Training
		Other

Expenses

Account Group	Account Category	Account Subcategory
Expenses	Computer and Internet
	Continuing Education
	Dues and Subscriptions
	Employee Benefits
	Insurance
	Legal and Professional
	Licenses and Permits
	Miscellaneous
	Office Expense
	Officer Salaries
	Repairs and Maintenance
	Salaries - Admin
	Printing
	Accounting
	Advertising
	Automobile Expense
	Bank charges
	Books and publications
	Contributions
	Postage and Delivery
	Rent
	Telephone
	Travel
	Utilities
	Website
	Meals & Entertainment
	Taxes	Taxes - Business
		Taxes - Payroll

Net Operating Profit per Employee

The metric Net Operating Profit per Employee shows a chart with each employee's net operating profit frequency by quarter and a monthly layout of the selected range. It is the ratio that roughly measures net operating profit generated by each employee.

Calculation: Net Operating Income / Employee Count

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-43-37.png

^{Data Source: Encore mapping for Net Operating Profit and Encore Settings for Employee Count}

Days Sales Outstanding (DSO)

The metric Days Sales Outstanding displays a column chart with the sales outstanding in days for the current calendar period. It is a measure of the average number of days that it takes a company to collect payment for a sale.

Calculation: DSO = (Average Accounts Receivable / Total Revenue) * number of days in the specified reporting period

MSPBots WIKI > The Calculation for Encore Benchmarking > image-2023-3-15_17-35-6.png

^{Data Source: Encore mapping}

Account Grouping for DSO

Accounts Receivable
Account Category Account Subcategory
Accounts receivable (A/R)
Accounts receivable

Total Revenue

Account Group	Account Category	Account Subcategory
Income	Product Sales	Hardware & Software
	Product Sales	Cloud Resale
	Special Product 1
	Special Product 2
	Recurring Service Revenues	Managed Services
		BCDR
		Security
	Labor-Related Revenue	Block Hour Revenue
		Time & Materials
		Project Revenues
	VOIP Revenue
	Hardware As A Service Revenue
	Miscellaneous Income
	Returns & Allowances

Product Margin

Percent of Services to Total Revenue

Service Gross Profit Margin

Percent of Recurring Revenues to Total Service Revenue

Percent of Project and Installation Revenue to Total Service Revenue

Percentage of Other Non-Recurring Revenue to Total Service Revenue

Percent of Service Salaries to Service Revenue

Sales Salaries and Commissions as a Percentage of Revenue

Advertising and Marketing as a Percentage of Revenue

Admin as a Percentage of Revenue

Gross Profit After Sales Expense

Service Revenue per Service Person

Revenue per Employee

Net Operating Income

Net Operating Profit per Employee

Days Sales Outstanding (DSO)

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