In a professional services firm the product is people’s time, and margin is decided long before the invoice goes out. Utilization, billing rates, write-downs and the gap between finishing work and getting paid set the result. Many firms watch revenue closely and look at those drivers only at year-end.
We work with engineering, consulting, architecture, marketing and IT services firms doing roughly $5M to $50M, most of them founder-owned. We start with project margin: hours, rates and realization for each engagement, and utilization by role. That usually reveals a few clients or project types that look profitable and are not.
For owners thinking about a sale in the next few years, the same numbers become the base for readiness work: normalized EBITDA, consistent work-in-progress accounting and a working capital history a buyer will accept. Partner compensation, entity structure and tax planning go to your tax advisors and counsel, and we give them the numbers.
Busy teams, thin margins
Everyone is at capacity and the firm still earns less than planned. Project margin with fully loaded labor cost usually points to a few engagements where scope grew and the fee did not.
Unbilled work that sits for weeks
Work in progress that waits for a milestone or a partner's review delays cash by a month or more. We track WIP days by project and set a billing calendar the team can follow.
Owner-driven numbers a buyer will question
Personal expenses, family payroll and uneven partner pay make EBITDA hard to read. We build a normalized view with support for each adjustment, well before a buyer asks for one.
Hiring decisions made on backlog alone
A strong backlog tempts firms to hire ahead of signed work. We model hiring against backlog, utilization and cash, so each new hire has a start date the numbers support.
01
Fractional CFO
A senior finance lead two to three days a month: close, forecast, board and raise.
From $8,500/mo
02
Financial Modeling & Forecasting
A driver-based model your team can run, tied to the plan you pitch to investors.
From $12,000
05
Board Reporting
A standing board pack and KPI set that turns meetings into decisions.
From $4,500/mo
06
M&A / Exit Readiness
Clean numbers, a quality-of-earnings dry run and a data room before buyers ask.
From $35,000
Professional Services
We have no formal board. Why would we need board reporting?
How early should an owner prepare for a sale?
Can you help us set billing rates?
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Finance leadership for Professional Services teams.
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