Consulting Firm monthly financial report
A consulting firm report should show work done but not yet billed. That number is cash you have earned and not asked for.
The six numbers for a consulting firm
| Number | How to work it out | What it warns you about |
|---|---|---|
| Utilization | Billable hours ÷ available hours | Capacity paid for but not sold |
| Days to collect | What clients owe ÷ monthly revenue × 30 | The gap between payroll and payment |
| Work done, not yet billed | Unbilled time and milestones | Cash earned but not asked for |
| Payroll, share of revenue | Salaries and contractors ÷ revenue | Team cost growing faster than billing |
| Largest client, share of revenue | Their billing ÷ revenue | Concentration risk |
| Weeks of payroll in the bank | Cash ÷ weekly payroll | How long you could carry a slow client |
Use these six in place of the general ones on the template's Report tab.
What to watch in a consulting firm
- Work done but not yet invoiced
- Large clients stretching payment past 60 days
- Subcontractor bills due before client payments
Not sure how much cash you should hold? Use the consulting firm cash calculator.
Get this worked out on your own numbers
Kestrel CFO sends agency owners a written review and a 12-month forecast every month. No calls. $990 a month.