Template · Professional services / Agency

Agency or professional services financial model template

Bring your sales, costs and cash figures. Adapt this starting plan for a services business to see what your next move could cost.

Starting assumptions

Check these against your business.

These are the numbers the template starts with, such as costs and how long customers take to pay. Review them with your accountant and change them as needed. They are US starting points, not your own results or financial advice.

SettingValue
Cost of revenue10%
Days to collect (DSO)45 days
Days to pay suppliers (DPO)30 days
Inventory heldnone
Revenue collected in advance (deferred)15 days
Depreciation life3 years
Tax rate21%
Trading days per month30
Revenue driverHourly / ad-hoc billing
Valuation default5× EBITDA

The statements

See where each assumption leads.

Follow the inputs through profit, cash and the balance sheet, then review the template's valuation basis. The method and assumptions determine the estimate; it is not a promised sale price.

Income statement

  • Revenue = projects per month × average project value plus retainers
  • Delivery payroll is charged to cost of revenue (tag roles as COGS), with subcontractors at 10%, so gross margin is the delivery margin
  • Sales and admin are opex

Balance sheet

  • Clients pay on 45-day terms, so receivables are the largest working-capital item
  • Retainers billed ahead sit in deferred revenue (≈15 days)
  • No inventory

Cash flow

  • Revenue growth ties up cash in receivables before it is collected
  • Watch DSO

Valuation

  • EBITDA multiple (default 5×), typical for people businesses

KPIs and benchmarks

What the dashboard tracks for this business

The KPIs on the dashboard and the thresholds the ratios grid shades against come from this template.

Dashboard KPIs

  1. 01Delivery (gross) margin
  2. 02Revenue / employee
  3. 03Days sales outstanding
  4. 04EBITDA margin
  5. 05Project value
BenchmarkTarget
Gross margin≥ 50%
EBITDA margin≥ 15%
Revenue growth (annual)≥ 15%
Runway≥ 6 months
Revenue per employee≥ $120k
Days sales outstanding≤ 45 days

Targets are US starting points for this kind of business, not advice.

Use it

Turn the starting point into your plan.

  1. Bring your current figures. Choose “Professional services / Agency” during setup or on My Company. Enter reported monthly totals in Your Data, or import a supported CSV or XLSX export from your books.
  2. Set what you expect next. Review the defaults above, then plan sales, people, running costs, purchases and funding. The assistant can propose edits for you to check.
  3. Explore a decision. Compare a more cautious sales assumption or a planned investment. Review cash and profit, then the valuation and any ownership implications when raising is relevant.

Sample figures show how the model works. Replace them with your own figures and assumptions before relying on the results.

Other templates: SaaS, Café, bar or restaurant, Retail or e-commerce, Marketplace.

Start with your business.Explore what comes next.

Request an invitation, bring your current figures and build a plan you can review with your accountant.