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.
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