Richard Brett: What is 'rev rec' & which metrics matter?

Which metrics should you track, to run your agency as efficiently as possible?

In this episode we speak with Richard Brett. Rich is a seasoned FinOps professional with 15+ years of experience, including a decade in the agency world. Rich has played a key role in scaling agencies, setting up financial processes, and supporting sustainable growth.

Rich will take us into a deeper dive of agency finances, starting with revenue recognition – recording revenue when it's earned, not when payment is received – and explain why this is so important.

Next, we’ll discuss key metrics and the kind of decisions you’ll be able to make using each:

• Utilization: see how effectively your team’s time is allocated to billable work, helping identify resource optimization opportunities.
• Recovery: shows the actual revenue generated from billable hours worked, highlighting areas of over-servicing.
• Billable paid: shows the proportion of billable work that is successfully paid for, helping assess the financial health of client engagements.
• Future month work value: projects the expected revenue from booked hours in upcoming work, allowing for proactive resource and budget management.

Finally, Rich will tell us 5 ways we can influence margins through agency rate cards.

Rich now runs his own consultancy, Rich Brett FinOps, providing bespoke financial services to agencies.

Follow Richard on LinkedIn: https://www.linkedin.com/in/richard-brett-36903590/

Follow Harv on LinkedIn: https://www.linkedin.com/in/harvnagra/

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