Fractional CFO for IT services companies
IT services businesses are people businesses, and the entire P&L traces back to staffing decisions. Utilisation, bench rate, gross margin per FTE, account concentration and FX exposure on offshore delivery centres each move the bottom line more than any single sales win.
Generic accountants treat consulting, agency and BPO businesses like any other professional services firm and miss the operating reality - that a 5% drop in utilisation or a 100 bps FX move can wipe out a quarter of operating profit. A fractional CFO who has worked across dev shops, software testing, agencies and BPO can build the staffing-level financial view that actually drives decisions.
We work with IT services founders across software development, testing, cloud, AI implementation and BPO, and we bring the utilisation-and-FTE lens into the finance function from day one.
Choose a fractional CFO that understands IT services
Utilisation and bench
Utilisation is the single largest swing factor in a services P&L, and bench cost is the line everyone underestimates. We build the weekly utilisation and bench report that ties directly to gross margin, so hiring and reassignment decisions get made before the quarter slips.
Gross margin per FTE
Different practices, geographies and seniority levels carry very different gross margin per FTE - and the blended number hides which one is actually subsidising the others. We build the practice-level view that shows where the margin lives, and where pricing or hiring needs to change.
FX and offshore reality
Most services businesses bill in one currency and pay delivery teams in another, and the FX gap can swing operating profit by 5-10% on a rate move. We set up the FX policy, hedging where it makes sense, and the reporting that keeps the board honest about how much of the result is operational versus currency.
Earn-out structured properly
Services M&A is mostly an earn-out conversation, and the difference between headline multiple and what lands in the founder's pocket sits in the structure. We model the earn-out against realistic post-close performance, so the deal that gets signed is the deal that actually pays out.
Recent fractional CFO projects
From the UK to Colombia, we acted as a fractional CFO to high-growth companies around the globe
We've helped set up FP&A, build financial models, and prepare for fundraising and M&A.
As a fractional CFO we performed a confidential valuation of Moburst, a Tel Aviv-based global mobile marketing services company, supporting Elevator Fund's portfolio management.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for IT services startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Financial modelling for IT services startups
We work with IT services founders to build investor-ready, KPI-driven financial models.
We dive deep into your company and sector specifics, to build a custom-made financial model driven by operational KPIs, requiring a minimal learning curve and time spent on monthly updates.
Utilisation & bench
Billable utilisation and bench cost tracked weekly by practice and seniority. Ties directly to gross margin so reassignment and hiring decisions get made before the quarter slips.
Gross margin per FTE
Practice, geography and seniority-level margin per FTE laid out individually. Shows which line is actually subsidising the others that the blended number hides.
FX exposure & hedging
Billing currency versus delivery cost currency modelled month by month, with hedge structure made explicit. Keeps the board honest about how much of the operating result is real versus a rate move.
Account concentration
Revenue by client and contract laid against renewal and expansion risk. Surfaces the accounts that, if they walk, take a quarter of operating profit with them.
Pipeline to staffing bridge
Weighted pipeline converted into staffing needs by skill, geography and start date. Closes the gap between a sales win and the bench actually being ready to deliver.
Earn-out model
Post-close revenue, EBITDA and retention targets modelled against realistic delivery. The difference between a great headline multiple and what actually lands in the founder's pocket.
Recent fractional CFO IT services track record
Selected fractional CFO engagements and prior CFO experience.
Fractional CFO for all IT services niches
From software development to software testing, we're a specialized fractional CFO to IT services companies.
Our fractional CFO experience spans across all IT services verticals.
Explore other sectors
We know tech inside & out.
We live and breath tech - true understanding of how startups operate is fundamental at what we do.
Recent IT services insights
Talk to us
Schedule a call to get a health check on your business and see how we could help.
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