How TAGIS helped TechCo create robust tracking of Client & Project Profitability

TechCo mainly works on customized software development projects for its clients across the globe. The daily-hourly time is logged by the team in an internal time-keeping software. The detailed payroll data is maintained in the form of month-on-month Excel sheets. Multiple Excel sheets existed for other direct costs like client-specific travel expenses, hosting charges etc. On the other hand, standard SME accounting software (Tally) is used to generate invoices and maintain additional direct and indirect cost data.

• Data Model by integrating Data sourced from multiple sources, leading to an efficient MIS process
  
  Due to the complexities of calculations and repetitive manual tasks (like multiple VLOOKUPs, Filtering and copy-pasting involved), putting together the Management Report was a mammoth task that used to be a long activity every year.
  
  We ensured that clean, formatted raw data was broken down into relevant masters and transactions which led to effective data interaction. We also defined proper data-entry formats for the internal team to follow. These interconnected sheets flowing into neatly integrated data-model now led to a management reporting system getting updated in a matter of a few minutes once the base data was ready.
  
• Migration from Annual to Monthly Reporting, Monitoring projects closely
  
  For the team, the annual management reporting with took some serious efforts every year. With the clean MIS process defined and all the stakeholders onboarded, the closing of the books and reporting thereon moved from an annual to quarterly system and later on to a monthly reporting system. This system is proving to be a critical decision-making tool for monitoring ongoing projects profitability, performance of the business units and project managers, proposing costing for new projects etc.
  
  
• Enabling Complex Financial KPIs calculations
  
  Key challenge was putting together Project and Client-level profitability using this data from different sources and was in multiple formats. Accurate allocation and apportionment of costs at multiple levels was another challenge. Additionally, aspects like calculating the total investment in product development effort of the same team were also to be addressed.
  
  TAGIS team brought their years of understanding of TechCo’s business model & process-flow, financial analysis and data analytics to create a robust Data model with intricate step-by-step tables. We used our Management & Cost Accounting expertise to appropriately define the KPI calculations. The allocation and apportionment of costs were made possible using multiple ways such as hours spent, costs incurred or other methods as well.
  
  
• Protection of Sensitive data accessible from simple excel MIS.
  
  Using our expertise in power BI and data analysis, we arrived at the key numbers by blending the key data points in such a way that only the relevant information was directly accessible to specific viewer of the dashboard e.g. Enabling row level security and filters for the key Business Unit leaders to access their specific BU information from a common dashboard.
  
  
• Keeping key numbers always in focus
  
  We well understand the importance of key numbers and unit economics. TAGIS team came up definition of units like Hours, Employees and Projects / Clients. With consolidated key numbers such as Revenue and Cost per hour, Direct cost and Gross Profit per Project, the benchmarking was enabled that helped the management evaluate performance, growth in a seamless manner.