A 60-second financial health check for your firm.
Margins, utilization, debt coverage, cash cycle — see how your practice stacks up against other accounting, legal, and consulting firms.
Worth quotingProfessional services firms with DSO above 60 days lose more to working-capital cost than they typically realize — the implicit interest rate is often 8–12%.
Built for owners and analysts who say…
- "Collections are dragging and tying up cash.
- "Margins look fine — but partners aren't getting paid.
- "Need a quick sanity check before partner draws.
What you'll get
- Margins and DSO vs professional-services medians
- DSCR check for SBA loans and lines of credit
- Owner-lens memo of what to fix this quarter
- PDF for partner meetings
People also ask
Common questions about professional services financials
What is a good gross margin for a professional services firm?+
Accounting, legal, and consulting firms typically run gross margin of 40–60%. Software-augmented firms (RPA, audit tech) push 55–65%. Below 35% suggests over-staffing relative to billable hours, or pricing that hasn't kept pace with salaries.
What is a healthy DSO for professional services?+
Target DSO is 30–45 days. Above 60 means collections are leaking working capital and partners are effectively self-funding the firm. Above 90 days, write-offs are usually understated.
How do banks evaluate accounting and law firms?+
Banks look at DSCR (target: 1.25× or higher), EBITDA margin after owner comp (target: 15–25%), and DSO. They discount partner draws heavily and underwrite to normalized salaries. Lines of credit are common for collections-driven working capital.
How can I tell if my firm is profitable enough to support partner draws?+
Compute EBITDA after market-rate compensation for all partners (not after current draws). If EBITDA after normalization is positive, the firm is genuinely profitable. If it's only positive because partners are under-paying themselves, draws are unsustainable.