
Know What Every Billable Hour Is Worth
Get in touchFirms that sell expertise have a deceptively simple business model and a genuinely hard measurement problem. Revenue depends on people, people are the biggest cost, and the standard P&L mixes the two together until nobody can say which clients, projects, or practice areas actually make money. Partners argue about compensation with incomplete numbers, busy months mask unprofitable engagements, and the pipeline lives in a different universe from the bank account.
Precision Financial runs a professional services firm, so we practice the discipline we bring to clients. We move timekeeper costs into cost of goods sold to expose the true direct margin on the work, build utilization reporting for billable staff, and forecast the firm's future from the two levers that actually drive it: expected revenue growth and planned headcount.
How We Help
Utilization and realization reporting
How much of each professional's capacity turns into billable work, and how much of what is billed turns into collected cash. These two numbers explain most of a firm's profitability, and most firms track neither well.
True service margin
Direct labor costs categorized into COGS so the income statement shows the real margin earned from delivering the work, before overhead muddies the picture.
Project and client profitability
Results by engagement, client, and practice area, so you can see which relationships carry the firm and which ones consume it.
Partner and owner compensation clarity
Clean separation of owner pay, distributions, and firm profit, so compensation conversations happen over numbers everyone can verify rather than impressions.
Pipeline-to-cash forecasting
Signed work, proposals, and staffing plans translated into a forward view of revenue and cash, so hiring decisions lead the work instead of chasing it.
KPI-driven margin improvement
We identify the handful of metrics that move your firm's profit, rate realization, staffing ratios, utilization by level, and build a monthly rhythm around improving them.
Who It's For
Agencies, consultancies, engineering and architecture firms, law practices, and any firm that bills for time or expertise and has grown past the point where the founder can sense profitability by feel. It especially fits firms adding their first non-founder billable staff, firms debating a partner promotion or buy-in, and firms whose revenue grew while profit strangely did not.
Why Precision
We understand professional services firms as well as any business we serve, because we are one. The utilization reports, margin structure, and forecasting we build for clients are the same tools we run our own firm on. That means the advice arrives tested, not theoretical, and it comes from CPAs and CMAs who have applied it across companies from startup through nine figures in revenue.
Get Started on Your Financial Journey with Us
Curious what your real margin per engagement looks like? Send us a recent month and we will walk you through it.
Get in touch