Financial Reporting

Analyze revenue classification, profitability metrics, and financial grading across your client portfolio

Financial Reporting gives you clear visibility into the profitability of every client relationship. It classifies revenue from your PSA into meaningful categories, calculates key financial metrics, and assigns letter grades so you can instantly spot your most and least profitable accounts.

Prerequisites

Financial Reporting relies on data from three PSA sync processes. All three must be enabled in your PSA integration settings before financial metrics will populate.

1. Enable Time Entry Sync

   Time entries provide the support hours data used to calculate Reactive Hrs/Endpoint and Effective Hourly Rate. Enable time entry sync in your PSA integration settings (Settings > Integrations > [Your PSA]).

2. Enable Invoice Sync

   Invoices provide the revenue data that gets classified into managed recurring, non-recurring, and other recurring categories. Enable invoice sync in your PSA integration settings.

3. Enable Contracts Sync

   Contracts (called Agreements in ConnectWise, Contracts in Autotask and Halo PSA) provide the recurring revenue and managed service agreement data. Enable contracts sync in your PSA integration settings.

If any of these syncs are disabled, Financial Reporting will show incomplete or missing data. After enabling them, allow one full sync cycle to complete before reviewing financial metrics.

Overview

Revenue Classification

Map PSA product types to revenue categories (managed recurring, non-recurring, other recurring) for accurate financial analysis.

Financial Grading

A-F letter grades based on three key profitability metrics, weighted and scored automatically.

Flexible Periods

View metrics for the current month, trailing 3 months, year-to-date, or any specific historical month.

Health Score Integration

Financial grades feed directly into the Client Health Financial dimension score.

Financial Dashboard

The Financial Reporting dashboard shows a table with one row per company and key financial metrics as columns.

Columns

Column	Description
Company	Company name (filterable)
Grade	Letter grade A through F based on profitability (filterable)
Managed Revenue	Total recurring revenue from managed service contracts
Support Hours	Time spent on reactive support from configured service boards
Endpoints	Managed device or user count based on your chosen endpoint model
Reactive Hrs/Endpoint	Support hours divided by endpoint count - how much reactive work each endpoint generates
Effective Hourly Rate	Managed revenue divided by support hours - what you’re actually earning per hour
All-in Seat Price	Total managed revenue divided by endpoints - your true per-seat economics

Period Selection

Use the period selector to choose the time range for financial calculations:

• Current Month - Data for the current calendar month
• Trailing 3 Months (default) - Averaged over the last 3 months for smoother trends
• Year to Date - Cumulative data from January 1st of the current year
• Specific months - The last 6 months are available as individual month selections

The Trailing 3 Months view is recommended for day-to-day analysis because it smooths out monthly variations and gives a more stable picture of profitability.

Financial Grading System

Every company receives a letter grade (A through F) based on three weighted metrics:

Metric	Weight	Scoring Thresholds
Reactive Hrs/Endpoint	33%	<0.33 = 100, <0.50 = 80, <0.75 = 60, <1.0 = 40, 1.0+ = 20
Effective Hourly Rate	34%	$200+ = 100,$150+ = 80, $100+ = 60,$75+ = 40, <$75 = 20
All-in Seat Price	33%	$200+ = 100,$150+ = 80, $100+ = 60,$75+ = 40, <$75 = 20

The weighted scores are combined into a composite score, which maps to a grade:

Grade	Score Range	Meaning
A	80-100	Highly profitable - excellent unit economics
B	60-79	Profitable - solid financial performance
C	40-59	Moderate - room for improvement
D	20-39	Below target - needs attention
F	0-19	Unprofitable - requires immediate review

Hover over any company’s grade to see a detailed breakdown showing the individual metric values, scores, and weights that produced the grade.

Metric Explanations

Reactive Hours per Endpoint measures how much unplanned support each managed device or user generates. Lower is better - it means your proactive management is reducing break/fix work.

Effective Hourly Rate shows what you’re actually earning per hour of support labor. Higher is better - it means your recurring revenue adequately covers your support costs.

All-in Seat Price represents the total monthly revenue per endpoint. Higher is better - it reflects the full value of your managed services per unit.

Setting Up Revenue Categories

Navigate to Settings > MSP Tools > Financial Reporting to configure how PSA data is classified.

Revenue Category Mappings

Financial Reporting needs to know which PSA product types represent managed services revenue vs. one-time project revenue. The settings page shows product classifications detected from your connected PSA integration.

Revenue Categories:

Category	Description
Managed Recurring	Recurring revenue from managed service contracts (e.g., per-seat agreements, monthly monitoring fees)
Non-Recurring	One-time or project-based revenue (e.g., hardware sales, migration projects)
Other Recurring	Other recurring revenue that isn’t core managed services (e.g., software resale, support plans)

Configuring Mappings

1. Navigate to Financial Reporting settings

   Go to Settings > MSP Tools > Financial Reporting.

2. Review detected classifications

   The page shows product types or billing item types automatically detected from your PSA integration.

3. Assign revenue categories

   For each product type, select the appropriate revenue category from the dropdown (Managed Recurring, Non-Recurring, or Other Recurring).

4. Save your mappings

   Save the configuration. Financial metrics will reflect the new mappings on the next data refresh.

PSA-Specific Configuration

The classification options vary by PSA provider:

ConnectWise

ConnectWise uses Product Types and Product Classes to categorize billing items. The settings page shows all detected product type/class combinations and lets you map each to a revenue category.

Autotask

Autotask uses Billing Item Types and Sub Types to categorize line items. The settings page shows all detected type/sub-type combinations and lets you map each to a revenue category.

Halo PSA

Halo PSA uses Asset Type Names to categorize billing items. The settings page shows all detected asset type names and lets you map each to a revenue category.

Revenue category mappings must be configured before Financial Reporting shows meaningful data. Without mappings, the system cannot distinguish managed revenue from project revenue.

Impact on Health Scores

The financial grade directly feeds into the Financial dimension of Client Health scores:

• The numeric score underlying the grade (0-100) becomes the Profitability sub-metric
• Profitability carries 50% weight within the Financial dimension
• The remaining 50% comes from Late Invoices (30%) and Days to Pay (20%)

This means improving a company’s financial grade directly improves their overall health score.

Best Practices

Map all product types during initial setup

Take time to correctly classify every product type from your PSA. Incorrect mappings will skew all financial metrics and grades.

Review D and F grades monthly

Companies with D or F grades are costing you money. Use the detailed metrics to understand why - is it too many reactive hours, or is the contract price too low?

Use Trailing 3 Months for strategic decisions

Single-month data can be misleading due to project spikes or seasonal variations. The trailing 3-month view gives a more reliable picture for strategic planning.

Compare Reactive Hrs/Endpoint across companies

This metric is the best indicator of how well your proactive management is working. Companies with high reactive hours per endpoint may need better monitoring, patching, or training.

Track grade changes over time

Use Client Health’s trend chart to see if financial interventions (price increases, stack optimization, proactive maintenance) are actually improving profitability.

Review after adding new PSA product types

When you create new product types in your PSA, remember to map them in Financial Reporting settings. Unmapped types are excluded from calculations.

Troubleshooting

Financial metrics show $0 or are empty

Check that you’ve configured revenue category mappings in Settings > MSP Tools > Financial Reporting. Without mappings, the system cannot calculate managed revenue.

Grade seems wrong for a company

Hover over the grade to see the detailed breakdown. Check if any individual metric is pulling the score down. Also verify that the correct PSA product types are mapped to Managed Recurring.

Endpoint count seems incorrect

The endpoint count comes from your connected RMM or device data. Verify that devices are synced and assigned to the correct company.

Support hours don't match expectations

Support hours are pulled from configured service boards in your PSA. Check which service boards are included in your integration settings.

Related Resources

MSP Tools Overview

Overview of all MSP Tools features

Client Health

See how financial grades feed into overall health scores

Tool Stack

Track tool deployments across your client base

Integrations

Configure PSA integrations that provide financial data