Agency Capacity, Project Profit & Cash Model

Business challenge

Agency owners often know their revenue but not which clients and projects earn their keep once bench time and freelancers are counted, or when billing will turn into cash.

Outcome

Leadership can price and staff work with real margins in view, spot clients that absorb capacity without paying for it, and see a cash squeeze weeks before it arrives.

Overview

A monthly model for a 45-person creative and digital agency with twelve clients and twenty retainer and project engagements. Staffing by role sets available and billable hours, while project budgets, scope changes and the pipeline set demand. Fixed-fee and time-and-materials work is recognised over time with contract assets, contract liabilities and onerous-contract provisions. Billing, ageing, expected credit loss and a 13-week cash view complete a linked income statement, balance sheet and cash flow. How to use this model: On the Dashboard sheet, choose the scenario in cell D5, the service line in I5 and the year in N5; KPIs and charts cover the full year; on the Client review and Project review sheets, compare revenue, delivery cost, margin, receivables and DSO for every client and engagement; on the Cash 13 weeks sheet, follow weekly collections, payroll and supplier payments from the selected month; staff sit on the Staffing sheet, engagement terms on Contracts and opening balances on Inputs.

Approach

Hours are planned by role against project budgets and the pipeline, giving utilisation and delivery cost by engagement. Revenue is recognised over time with contract assets and liabilities, invoices age into receivables with an expected credit loss, and a weekly cash view sits beside the monthly three statements.

Capabilities

Skills

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