Accounting and audit service profitability and capacity analysis tool
The manager compares the accounting or audit contract to the work performed and the remaining need. See if the result is changed by the price, additional works or execution costs.
Contract volume, additional work, employee time, automation benefits and accounts are not tied together in one place. unpaid work becomes a hidden part of the cost, and pricing is adjusted late.
How the solution works
- Capture agreed volume and cost assumptions
- Plan work according to deadlines and competence
- Get actual time and external costs
- Review the additional scope and remaining work
- Agree settlement and use conclusions for another plan
Key challenges
- Customer and service profitability seen too late
Solution capabilities
Contract model
The periodic fee, hourly work and fixed task have different logics of income and extra volume.
Actual costs
Working hours and external service are assigned to a specific customer and for a period of time. The internal cost rate is separated from the sales rate.
Volume change
Additional work is shown economically from its occurrence, but the law of taxation depends on the contract and the client's decision.
Remaining capacity
The planned remaining work evaluates the term, proper specialist, review and other commitments. The percentage of employment alone does not show feasibility.
Explanation of the result
The initial plan, current forecast and fact are compared to the same cost extent. Payment receipt is separated from service earned income.
Business context
- Customer and service profitability seen too late
- Contract volume, additional work, employee time, automation benefits and accounts are not tied together in one place. unpaid work becomes a hidden part of the cost, and pricing is adjusted late.
- The contract price is discussed in terms of the service actually provided
- The scope of the client's work may increase due to operations, complexity or additional requests. The costs and remaining capacity associated allow for a separation of these changes. The team can justify a price or volume review and provide a service offer that is executed to the new client.
Core features
- Contract model
- Actual costs
- Volume change
- Remaining capacity
- Explanation of the result
Key integrations
- Sources of contracts, accounts and accounts
- Agreed scope, actual income and external costs.
- Time and task progress
- Actual work, the need for competencies and the remaining scope of the task.
Potential impact (%)
The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.
Service cost forecast error
3–16%Decreasing
This illustrative scenario assumes that 15-40% of forecast error is attributable to the data and model used. That share is assumed to fall by 20-40%. Company data is needed to verify both the addressable share and the resulting change.
To measure the absolute difference between forecasted and actual costs in euro at the selected forward control point of the same volume.
Late-discussed additional volume
5–25%Decreasing
This illustrative scenario assumes that 20-50% of missed actions can be identified through task and deadline tracking. That share is assumed to fall by 25-50%. Company data is needed to verify both the addressable share and the resulting change.
Counting changes requiring volume and price discussion started only after the work was done.
Share of extended service contracts that have retained the intended margin
1–2%Increasing
Sample starting portion - 75%. Assumption: 10-20% of the remaining cases relate to the volume and cost of service not discussed in time; a solution would help resolve 15-30% of these cases.
Extended and margined contracts are divided by all comparable contracts that have expired during the period. The margin limit and cost volume are agreed in advance to include professional quality assurance.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- The volume of customer work is growing, but the agreed price does not always cover actual labor costs.
- It is difficult for the team to anticipate the load of specialists and to match the cost of additional work in time.
Implementation requirements
For service analysis, price, time and cost values are compatible. Commercial solutions for additional queries and projections of the remaining volume must maintain the history of the original agreement and the reasons for the actual deviations.
Further development options
- Wider team scenarios with a consistent cost methodology and reliable evaluation of the rest of the work.