Strategic Financial Consulting

Client:

IT Consulting Firm – Birmingham, UK

Background:

The client specialized in project-based IT services but was struggling with inconsistent profitability. Some projects appeared profitable on paper but drained resources due to hidden costs. They lacked a systematic way to analyze profitability by project and client.

Challenges:



• No project-level costing or tracking.
• Underpriced contracts due to incomplete cost structures.
• Difficulty securing financing because of unclear financials.

Solution Approach:



• Introduced project-based costing and implemented time-tracking integrated with accounting.
• Built profitability dashboards by project and client.
• Redesigned the firm’s pricing model to reflect true overhead and labor costs.
• Created financial reports suitable for lenders.

Results:



• Project margins improved by 18% in the first year.
• Client secured a $1M credit line from a U.S. bank with stronger reporting.
• Management identified unprofitable clients and renegotiated contracts successfully.