Time that is never captured
Work done late, done in passing, or done by someone who does not record time. It disappears silently and permanently.
Professional Services
Professional services firms
Law firms, consultancies, agencies and practices where the product is time and the risk is unbilled work.
Who this is written for: Managing partners, practice managers, firm accountants and owners of consultancies and agencies.
How this sector actually operates
In a professional services firm the inventory is time, and it perishes daily. Revenue depends on capturing work accurately, billing it correctly and collecting it promptly — and on knowing which matters, clients and fee earners are actually profitable once real cost is applied. Most firms can tell you total revenue. Far fewer can tell you the true margin on a matter, the utilisation of their people, or which clients are consuming more than they return.
The problems we address in this sector
These are the issues that recur. They are described as sector problems, not as claims about clients we have worked with.
Work in progress nobody values
Unbilled work accumulates in the accounts as a number nobody tests, and write-offs appear only when the matter closes.
Matters billed on feel
Fixed fees quoted without a costed basis, so the firm discovers the margin after the work is finished.
Utilisation measured inconsistently
Different fee earners, different assumptions about available hours, so comparisons between people and periods are meaningless.
Client balances that age quietly
Professional firms are culturally reluctant to chase, so receivables drift and working capital suffers.
Disbursements and expenses leaked
Court fees, filing costs, travel and third-party expenses recharged late or not at all.
The work that follows
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Matter and project costing
A costing structure that captures time, disbursements and overhead against each matter, so profitability is visible while the work is still running rather than after it closes.
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Time capture process
A realistic capture routine — including the resistance to it — with prompts, deadlines and a review of what is being lost.
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WIP and billing discipline
Regular WIP review, billing triggers, interim billing on long matters and an agreed approach to write-offs.
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Utilisation and fee-earner reporting
Consistent definitions of available and chargeable hours, with reporting that supports decisions about hiring, pricing and workload.
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Client profitability analysis
Revenue against real cost by client, so the firm can see which relationships are subsidising others.
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Receivables and collection routine
An agreed follow-up process, ageing reporting and escalation thresholds that respect the client relationship while protecting cash.
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Systems configuration
Configuring the platform for matter structure, time recording, approvals on write-offs, and the reports the partnership actually reviews.
The reporting pack we would build
Reporting is where sector knowledge shows. A generic management pack tells every business the same thing; a useful one reflects how your sector makes money and where it loses it.
- Matter profitability and WIP by matter and fee earner
- Utilisation and chargeable hours against available hours
- Revenue and margin by client and by service line
- Aged receivables with billing-to-collection lag
- Disbursement recovery rate
- Cash position and forecast
Platforms and services for this sector
Platforms commonly used in this sector
Services we apply here
Accounting & Bookkeeping
Bookkeeping is not data entry. Done properly it is the discipline that turns daily transactions into numbers a managing director can rely on. We run t…
Service detailFinancial Advisory & Risk Management
Advisory work is useful when a decision has to be made and the numbers behind it are not clear. We analyse the position, model the options, quantify t…
Service detailBusiness Process Improvement
Software only automates the process you give it. If the process is unclear, undocumented and dependent on individuals, the system simply records the c…
Service detailERP & Accounting Software Implementation
Most businesses do not fail with software because they bought the wrong product. They fail because nobody designed how the business would run inside i…
Service detailStatutory and technical considerations
Professional practices often carry client money, trust or escrow obligations, and professional body reporting requirements. Where those apply, the accounting records must segregate and evidence them separately from firm funds. We scope that specifically rather than assuming a standard ledger is sufficient.
We do not publish rates, thresholds or deadlines on this website, because a figure that is out of date is more damaging than no figure at all. Where specific figures matter, they are given in an engagement against the position in force at that date.
Questions we are asked in this sector
How do we get fee earners to record time?
By making it quick, by closing the loop so they can see what happens to the time they record, and by reviewing what is lost rather than chasing individuals. Time capture is a cultural problem with a process solution. Mandating it without either usually produces fiction.
Do you already work with professional services businesses?
This page describes the operating problems and reporting needs we understand in this sector, and the work that follows from them. It is not a claim about named clients. If you want references in your sector, ask us directly and we will tell you honestly what we can provide.
Do we need an ERP, or is accounting software enough?
It depends on whether your reporting relies on operational data — stock, jobs, production, projects, grants. If it does, accounting software will leave you assembling that data by hand every month, and an ERP is usually the cheaper option over three years. Use the solution finder for a preliminary view, then let us assess it properly.
Can you work with the system we already use?
Usually, yes. We review the configuration and the processes around it first, because many problems described as software problems are configuration or process problems. Where a rebuild is genuinely needed we will say so.
How long before we see a difference?
Some things are quick — a daily reconciliation routine, a proper aged receivables report, an approval framework. Others take a full cycle or two, particularly where data has to be corrected first. We set expectations in the scope rather than promising a timeline we cannot control.
What do you need from us to start?
A named person who can make decisions, access to the records and the systems, and time from the people who do the work. Implementation and process work fail on availability more often than on anything else.
Let’s build a stronger financial foundation for your business.
Tell us what you are dealing with. We will tell you honestly whether we can help, what it would involve and what it would cost.