Abbreviated Earnings Pro Forma for a PS Firm
Originally published: 17/04/2019 16:50
Last version published: 16/12/2019 07:03
Publication number: ELQ-26220-2
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Abbreviated Earnings Pro Forma for a PS Firm

A quick Excel Tool for a Professional Services Firm to calculate estimated financial earnings.

This snappy Earnings Pro-Forma for a Professional Services Firm tool quickly calculates the estimated earnings from the combination of billing rates, utilization and cost structure of your professional services firm. This tool helps you analyze these critical components of earnings. The Billing Rate Utilization Matrix adds additional insights and allows you to create a sensitivity analysis using parameters of your choice.

All you need to complete this simple earnings pro forma are the following estimates:

- The number of Consulting (Customer Billing) Employees, the average customer billing rate/hour, their billing utilization as a % of hours paid and their total compensation/hour
- The number of Non-Employee Consultants, their average customer billing rate/hour and their cost/hour
- The number of Admin (No Customer Billing) Employees and average cost per hour
- Your Fixed Annual Overhead costs
- The PS P&L Proforma tab (the main input tab) includes an example to help you visualize how the table looks when completed.

On the first pass don’t worry about being perfect. Learn how the tool works. Compare your numbers to your most recent years results. Investigate areas that don’t align with your expectations. Once you have a handle on the tool, experiment to see how changes to billing rates, number of employees, number of consultants, utilization rates and overhead costs impact your results.

Let us know how we can improve our tools to better serve you.

If you have any questions or stumble along the way, please reach out to us at CFO.University. You wouldn’t be here if you didn’t believe professional growth was critical to your success. We wouldn’t be here if we couldn’t help you accomplish that.

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