Professional services firms
A firm bills by the hour and still cannot say which hours were worth billing.
A professional services firm doing about $8M a year can report billable hours and realization, but usually cannot say which clients and engagement types actually carry margin once the unbilled hours, the scope creep, and the partner time nobody records are counted. Time entry knows what was logged, the invoice knows what was charged, and the difference between them is where the answer lives.
A consultant on about $140,000 fully loaded who gives away four hours a week to work nobody bills is roughly $13,000 a year, per person. It never shows up as a loss, because it was never recorded as anything at all.
Helps answer: How do we make money?
The questions a firm cannot answer today
- Which engagement types actually carry margin?
- Do retainers earn more per hour than projects, or just feel safer?
- Did the last hire pay for itself?
- Is it time to hire a controller, or to fix the information first?
- Is the AI and software spending actually returning anything?
- How much time goes into generating contracts from templates?
Can’t tell which one is yours? You are not supposed to be able to. That is the point.
What we connect
These are the systems a business like yours already runs on. Nothing here gets replaced. The work is joining what each one knows into one connected picture of how your business works.
- Your time and billing system
- Project or matter files
- QuickBooks
- Subcontractor and vendor invoices
- The pipeline spreadsheet
- Engagement letters and scopes
Named by what they do rather than by brand, because the brand matters less than whether the thing is connected to anything else.
What a professional services firm asks before they start
We already have utilization and realization reports. What else is there?
- Those measure the hours that got recorded. They cannot see the work that was done and never entered, which in most firms is the larger number.
Do we have to change our time and billing system?
- No. It usually holds the record you bill from, and that stays. The work is connecting it to what things actually cost.
Should we just hire a controller instead?
- Possibly, and it is a fair question to ask first. A controller assembles answers from the information available. If that information is scattered across five systems, you are paying a senior salary to do reconciliation by hand.
Our engagements are all bespoke. Does that break the analysis?
- No. Bespoke work still has patterns, usually by engagement type, by client size, or by who ran it. Those patterns are what you are looking for.
Who owns what gets built?
- You do, and the data with it. No licence to buy and no long contract.
Everything we have written for professional services firms
6 articles, newest first.
When to Hire a Controller: The Question a $9M Firm Should Ask First
Why a $9M professional services firm cannot get a financial answer inside the window a decision allows, and how to tell if a controller is the right spend.
Retainers or Projects: Which Work Actually Earns More Per Hour at a Professional Services Firm
Why a $7M professional services firm cannot tell if retainers or projects earn more per hour, and what counting scope creep and unbilled follow-up would show.
How to Tell If Your AI and Software Spending Is Paying Off
Why an $8M professional services firm cannot say what $40k of AI tools returned, and what it would take to judge the next investment on evidence.
Return on a Hire: How a Professional Services Firm Can Tell If Its Last Investment Paid Off
Why a $6M professional services firm cannot say what last year's senior hire returned, and what it takes to grade an investment before making the next one.
Client Profitability at a Consulting Firm: Which Engagement Types Actually Carry Margin
Why an $8M consulting firm cannot say which client types and engagements carry its margin, and what it takes to see realized rate by engagement.
Contract Generation From Templates for a Small Law Firm
What a $5M law firm burns in attorney time assembling routine documents from old files, and what it takes to draft from clean templates instead.
The same problem in other trades
The systems change. The gap between what the field knows and what the books know does not.
Pick the three leaks you recognize. We’ll tell you what they typically cost a business your size, in dollars.
Pick the three you recognize. We’ll come back with what they cost, in dollars. No sales call, no sequence.
Would rather just talk? Text us, hello@ondework.com, or the contact form.