Financial Metrics for Consulting Firms
Management, strategy, and professional consulting firms providing advisory services to businesses
Common Challenges
- Bench time between engagements eating into margins
- High consultant salaries with variable utilization
- Scope creep on fixed-fee engagements
- Client concentration risk with large accounts
- Balancing growth investment with profitability
- Pricing pressure from competitors and freelance consultants
Typical Cost Structure
Typical Revenue
$300K-$2M
Team Size
2-15 consultants
Key Metrics for Consulting Firms
Essential financial metrics with benchmarks specific to consulting firms
Gross Profit Margin for Consulting Firms
How much money you keep from each sale after paying direct costs
Current Ratio for Consulting Firms
How much money you have available to pay bills due in the next 30-90 days
Days Sales Outstanding (DSO) for Consulting Firms
How long it takes customers to pay you after you invoice them
Net Profit Margin for Consulting Firms
How much money you actually keep after paying all expenses
Burn Rate for Consulting Firms
How much cash you're spending each month to run your business
Cash Flow for Consulting Firms
The movement of money in and out of your business over a specific period
Overhead Costs for Consulting Firms
The ongoing expenses of running your business that aren't tied to delivering a specific product or service
Your next step
How Does Your Consulting Firm Stack Up?
Upload your P&L and see how your numbers compare to industry benchmarks in 60 seconds.
Get Your Free Health ScoreFree analysis. No credit card required.