wayahead has several reports where the forecasted and actual sales (or contribution) are compared to your sales targets, helping you to understand where the discrepancies are.
There are two ways to accommodate this:
Set up sales targets in Xero and connect Xero to wayahead
Set up sales targets or contribution targets directly in wayahead, no Xero connection required.
| Xero | wayahead |
Defined in... | ||
Xero Connection Required? | ✅ | 🔵 |
Sales Targets | ✅ | ✅ |
Contribution Targets | ❌ | ✅ |
✅ yes ❌ not available 🔵Not applicable
Sales vs contribution
Most agencies set up sales targets and compare it to their total invoicing for the month. But when your agency handles large or a lot of third party costs that are billed on to the client, it could be wiser to focus on contribution rather than sales.
Contribution is the term used in wayahead for sales minus cost of sales (i.e. invoice total - expenses/purchase orders for that job/invoice).
Where sales totals might fluctuate depending on when large expenses are billed out, contribution would be a more stable factor.
wayahead allows you to choose if the configured targets are sales or contribution targets.
Using Xero Sales Targets
To know more about how to use targets from Xero, you must set up targets in the budget manager. Then you connect wayahead to Xero and choose which accounts should be included in the targets.
The Xero Budget Manager only allows you to set up sales targets, not contribution targets.
Follow the procedure to connect to Xero here:
Defining targets in wayahead
BEFORE YOU GET STARTED:
Make sure you set up the correct start of your financial year via the Reporting Preferences:
You can set up targets in the wayahead Setup menu > Sales Targets.
When you get started, the page is blank. You must enter a new target line for each financial year. Click New FY and choose the start of the FY you wish to set up targets for. You will see tht the FY automatically starts on the date set in your preferences.
After clicking Create, simply fill out the target amount for each month of the year.
For each line, you can choose if the target are Sales Targets or Contribution Targets. However, it is currently not possible to mix both types of targets in the same report. So all your targets should be set up as sales targets or they should all be set up as contribution targets.
How are targets used?
The targets are used in the following reports:
Forecast report
Monthly management report
Income report
wayahead will show you the defined target from Xero or wayahead and the variance between the actual or projected sales vs the target (or contribution respectively)
