by Chris Williams | Apr 25, 2025 | Blog
“I need to get back to you on that.” Putting her largest client on hold, Sarah’s voice felt tighter. They requested last quarter’s billing breakdown, and she had no clue where to find it. As she rifled through desk drawers and clicked through endless spreadsheets, her professional image was deteriorating by the second.
Twenty minutes later, she had the information, but the damage was done. Her client’s slight tone change told the story: this was not the clinical, polished expertise they had anticipated.
This vulnerable moment is not about disorder. It’s the natural consequence of operating a rapidly scaling consulting company on manual financial systems. When you’re great at solving client problems but still calculating your finances using methods more appropriate for a lemonade stand, something’s gotta give.
Switching to automated financial systems is not solely about efficiency—it’s about reconfiguring how you function and how you’re perceived as a professional. Let’s examine how to make this leap without killing the client work that keeps paying your bills.
The Hidden Cost of Financial Management in a Hotel
When consulting firm owners add upthe cost of manual financial processes, they tend to consider only the obvious: a few hours of bookkeeping a week. But the actual price is far more profound.
Consider time first. Financial administration takes up to 15-20 hours a month for most consulting firm owners – reconciling accounts, issuing invoices, classifying expenses, and gathering tax paperwork. Assuming standard consulting rates, thatmight represent between $3,000-5,000 in future revenue that could have been generated per month.
Then there’s accuracy. One environmental consulting firm found that it had under-billed clients by nearly $32,000 in one year after going through its manual tracking, which led to billing errors. “We were leaving money on the table on every single project,” the owner said. And we didn’t find out until we automated our systems.”
However, the most significant cost may be opportunity. As you manually match up transactions or search through piles of paperwork for missing receipts, your competitors study their highest-value customer segments, identify growth opportunities, and make informed decisions about hiring and expansion based on data.
“I was good at helping clients optimize how they operated,” admits Tom, a management consultant. “But I was treating my firm like it was 1995. I thought the irony was not lost on me — I didn’t have time to fix it.”
Automation, A Gift that Keeps on Giving
When consulting firms automate their financial systems, the benefits go way beyond saving time:
Financial visibility in real-time. You’re reading the right cash position, each outstanding invoice, the exact profitability of each project, and any tax obligations as soon as you open the laptop before a client meeting. This clarity changes the way you approach decision-making about taking on new projects, hiring staff, or investing in growth.
“Now I understand our numbers,” a System Six client says. “Now that I’m not wrestling with basic bookkeeping, I’m using financial insight to drive my decisions.”
Lower error rates and compliance risks. Automated systems capture duplicate entries, flag unusual transactions, and treat income and expenses consistently. You’ll significantly lower your risk of tax penalties and audit problems.
Corporate customer communications. If a client inquires about their billing history or project costs, you can answer instantly and confidently. By acting quickly, you build a professional image and strengthen rapport with your client.
Improved cash flow. Invoices are automatically sent out on time, complete with follow-ups that don’t require your intervention. One consulting company was able to reduce its average payment time from 47 days to 23 days simply by automating its accounts receivable process.
Insights into project profit If you have the correct type of financial automation, you can clearly identify which projects and clients drive your actual profit—not just revenue. This realization can, of course, also create unexpected strategy newness.
“Our biggest client turned out to be our least profitable,” explains Kelly, a marketing consultant. “Without automation, we would’ve never seen the full scope of project costs.”
Transition Planning: A Step-by-Step Guide
Moving to automated financial systems requires some planning but can be done without being overwhelming. Follow these steps to be successful with this:
1. Identify your pain points. Identify what’s not working before seeking solutions. 9 9. Are you still having the most trouble tracking expenses? Invoicing delays? Tax compliance? Analysis of project profitability? Knowing your particularities gives you peace of mind about implementing the right solutions.
2. Set clear goals with metrics. Replace an unclear goal of wanting to “improve finances” with specific goals: “Reduce bookkeeping time to two hours from 20 hours a month” or “Cut average time to collect payment from 45 to 15 days.”
3. Select the appropriate technology stack. QuickBooks Online is a framework for automating the system for most consulting firms. More expense management, time tracking, and reporting tools can plug into this core. System Six usually prescribes platforms like Gusto for payroll or Ramp for expense management based on your firm’s specific needs.
4. Plan for data migration. Decide what historical data to carry over to the new system. Scrolling back to a specific date and starting fresh may be easier than attempting to recreate history exactly. Better to do a clean cutover than to attempt to reconcile years’ worth of manual records.
5. Develop a realistic timeline. The average overall transition will take 4-6 weeks, though most of the critical work will occur in the first two weeks. Schedule this change for a relatively calm period for your business.
6. Determine who will lead the transition. This project needs a project owner. If you do not have internal capacity, bring in someone on the outside who has done these many times. As one System Six client puts it, “Having experts manage our transition spared us weeks of trial and error.”
Addressing Common Challenges
Not even the best-laid plans go smoothly. Here’s how to get past the most common ones:
Learning curve concerns. Owners of many consulting firms fear they won’t be able to master new systems. Opt for concrete platforms and suitable training to rework challenges, The answer. Once the initial learning curve is crossed, most find modern financial systems easier to use than the manual processes that preceded them.
Data quality issues. Years of manual bookkeeping often lead to inconsistent data. Instead of perfecting records, concentrate on clean processes going forward. Make a specific transition date and make sure all new transactions go through the better system.
Team resistance. * Staff used to present systems could find it difficult to adapt. Engage them early in planning, stress how automation will ease their jobs, and give them enough training. As one office manager said to me, “At first I wasn’t convinced, but now, I would never want to go back to the old way.”
Cost concerns. When considering costs, weigh them against the cost of your time doing financial activities and the opportunity cost of lost billable hours. Most consulting firms are seeing a 3-6 month return on investment in the form of time savings, improved collections, and better decisions.
How to Get the Most Out of Your New System
Once you have your automated system in place, these strategies can help you get the most out of it:
Set periodic financial reviews. Schedule a monthly date with yourself to take note of important numbers or metrics and insights gleaned from your system. This is the discipline, and it ensures that you use the data to make better decisions.
Explore advanced reporting. Most consulting firms probably use only 20% of the financial system. Once you have the basics down, explore more advanced features such as custom reporting, forecasting, and scenario planning.
Refine your processes. To be clear, automation does not mean set and forget. As you gain insight into what is best for your business, seek ways to optimize workflows further.
“We saw the real value three months after the implementation,” recalls one System Six client. That’s when we began using our financial data strategically to decide what service lines to grow and what clients to target.
From Administrative Chore to Strategic Resource
When automated correctly, financial management transforms from a burden to an asset. Rather than dreading administrative tasks, you’ll reference real-time dashboards before making key business decisions.
Picture responding confidently to client inquiries about previous work and never needing to put anybody on hold. Now imagine knowing the exact types of projects that yield the most profit and using that knowledge to inform your firm’s future. Imagine being financially literate enough to hire based on insights and not intuition.
This isn’t just about freeing up time — and rest assured, those nights and weekends will come back to you — but about the degree of quality. It’s about growing your consulting firm from a practice into a real business.” It’s about bringing internal operations to an equal level of sophistication as delivering your services to clients.
The most successful owners of consulting firms realize that financial systems aren’t just about checking a box and keeping records. They’re the bedrock for growth, strategic decision-making, and peace of mind.
Are your financial systems in alignment with your professional expertise? The transition may be less jarring than you’d expect.
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About System Six
Founded in 2009, System Six is a Seattle bookkeeping and accounting services provider. As a provider of cloud-based accounting services for small- to mid-sized consulting firms, we have over 175 clients nationwide in the U.S. We employ a team of more than 35 seasoned individuals who provide bookkeeping, payroll processing, accounts payable, tax compliance support, and technology implementation services. We work off a fixed-fee model and bill weekly for recurring work depending on your firm needs and complexity. Our consulting clients tell us we’ve “transformed their accounting systems into reliable and credible practices,” enabling them to grow their businesses without concern for cash flow, payroll, or compliance problems. For details, visit www. systemsix. com.
by Chris Williams | Apr 22, 2025 | Blog
That feeling is when you see the IRS logo in the envelope in your mailbox. Your heart skips a beat. Your mouth goes dry. Before you even open it, your mind cycles through every tax decision you’ve made in the past year. Is it a routine notice? An audit request? A penalty assessment?
This pie-in-the-sky scenario is all too familiar for consulting firm owners. Yet, despite all the heavy lifting, tax compliance is a constant source of stress. And that worry is justifiable — the consequences of failing to comply can have serious consequences on your firm’s bottom line and reputation.
As one System Six client said, “I was great at servicing my consulting clients, but I was completely out of my depth with tax requirements. That disconnect cost me over $8,000 in penalties before I got appropriate help.”
Join us as we explore the most typical tax compliance missteps for consulting firms, what non-compliance is really costing, and actionable solutions your firm can implement.
Tax Compliance Mistakes Common to Consulting Businesses
10-50 Employees Small Consulting Firms How small consulting firms with 10-50 employees face unique tax challenges that corporations or other types of small businesses do not. These are the most common compliance issues:
Worker misclassification: This demarcation line between employees and contractors is especially blurry in consulting. Your project-based associate may act like a contractor to you, but the IRS might have a different view based on elements such as where a worker provides their services, which equipment they use/own, and which party controls the scheduling. As one environmental consulting firm learned the hard way, mischaracterizing a mere three team members led to back taxes, penalties, and interest over $42,000.
Mistakes on quarterly estimated tax: Consulting income commonly varies widely from one year to the next and even from quarter to quarter, complicating quarterly tax estimates. Overpaying locks up working capital that could be better used growing the business, and even a 10% underpayment can result in penalties.
State tax nexus confusion: And with remote work now the norm, your workers could be generating tax obligations in states where you’ve never even set foot. An unnamed management consultant whose team is spread across seven states learned she had five filing requirements — after receiving notices from three state tax agencies.
Documentation of expenses not done correctly: Client dinners, travel costs, and home office deductions demand rigorous documentation. “I had valid business expenses,” one System Six customer reported, “but without proper receipts or documentation, my deductions were disallowed in an audit.”
Ignoring self-employment tax: So, even if you make an LLC or S-Corporation for your consulting firm, you still have to pay self-employment taxes. This 15.3% tax liability surprises many.
The Genuine Price of Non-Complying
The actual price of tax non-compliance goes well beyond the direct penalties:
Fees make the penalties stack up quickly: For each month that a taxpayer fails to pay, the IRS typically assesses 0.5% of unpaid taxes, plus interest. Failure to file penalty fees can be as high as 25% of unpaid taxes. For a consulting firm with $2 million in annual revenue, even a relatively small compliance issue can lead to a penalty greater than $10,000.
Audit costs sap resources: Beyond penalties, the effort and expense of responding to an audit brings substantial opportunity costs. One firm owner told me it took over 60 billable hours to deal with an IRS audit, which cost them $18,000 of revenue.
The reputational damage lasts: In the consulting world, where no one will hire you if they don’t really trust you, tax woes can hurt your professional reputation. If they become known, tax problems can raise questions about your attention to detail or your financial stability among clients and partners.
“Post compliance, I spent more energy worrying about taxes, rather than actually how to serve client strategy better,” said a strategy consultant. “The mental toll was a cost of creative energy that I could invest into my clients.”
Guide to Tax Compliance for Consultants
These practical strategies will significantly minimize your tax compliance risks:
Move your accounting systems to the cloud:Today’s financial management systems auto-populate your transactions with predefined categories, track your project-level profitability over time, and alert you to potential compliance issues before they become costly mistakes. “System Six changed our entire accounting system to accurate and on-time processing,” says one client. “I used to look up data before it was time between my client meetings.
Establish a tax calendar with some buffer time: The majority of penalties arise from missed deadlines. The full calendar must contain the filing date and the milestones to track you as you prepare for every deadline (2–3 weeks ahead of it). Including this buffer is essential to avoid last-minute scrambles that result in mistakes.
Record business expenses in real-time for those who work on a need-to-know basis. Capture receipts as they come using receipt-capturing apps that mix with your accounting system. This practice avoids the end-of-quarter rush of finding supporting documentation and ensures you can prove a deduction if questioned.
Create a strategy for state tax compliance: If your team is dispersed in multiple states, develop a proactive compliance strategy alongside a tax professional. Identify where you have nexus (tax presence) and set up systems to monitor and meet multi-state obligations.
Set quarterly tax planning meetings: Instead of just remitting estimated taxes, make each quarter a time to assess your firm’s overall tax position. This regular checkpoint enables you to reform your strategies in real-time as the business evolves.
When and How to Seek Professional Help
Although it may seem cost-effective to manage your taxes, most successful consulting firms understand that with great responsibility comes an ever-greater need for experts when necessary:
When you may want professional support:
– More than 5 hours a month spent on tax tasks
– Get any notices from tax authorities
– (Branching out into new states or service lines)
– Growing beyond 10 employees
– Uncertainty around tax decisions
When choosing financial support, seek a partner who:
– Has experience specific to consulting businesses your size
– Test – Provides cloud-based, real-time financial visibility
– Advises you proactively rather than waiting for you to ask just to be compliant
– Nestable with your current systems
“A System Six has done wonders for my stress level,” says an owner of a consulting firm. “They’ve built automated systems that monitor every deadline and requirement. I leave compliance to the cloud; I never need to worry about it; it’s all done automatically.
Making Tax Compliance a Strategic Advantage Instead of a Burden
Tax compliance doesn’t have to terrorize consulting firm owners. Proper systems, expertise, and a mindset can make it all but invisible—ticking over in the background as you devote your energy to growing your business and serving clients.
Imagine opening mail from the IRS with confidence, not dread. Imagine seeing your tax position live and in real-time at any one point. Imagine all the mental energy spent worrying about compliance migrating to strategic growth instead.
This isn’t merely about dodging penalties – it’s about changing how you think about your firm’s finances. Leverage the Power of Tax Compliance: With clarity and confidence in your tax compliance, you can focus on Delivering Value to your Clients.
Does it need to be time to reassess your path to tax compliance? A professional review of your current systems may also help you identify risks and opportunities you haven’t considered yet.
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About System Six
Founded in 2009, System Six is a Seattle-based bookkeeping and accounting services provider. We are a cloud accounting firm serving 175+ clients coast to coast in the U.S., with a niche focus on the small to mid-sized business and nonprofit sectors. We are a team of 35+ expert specialists providing services in bookkeeping, payroll processing, accounts payable, tax compliance support, technology implementation, and more. We’re on a fixed-fee basis, charging against weekly recurring work ranging from around $400 to $800, depending on the work complexity. Our clients describe us as having “revolutionized their accounting systems to become correct and reliable means,” enabling them to spend time growing their business rather than worrying about cash flow, payroll, or compliance nightmares. For further details, click on www. systemsix. com.
by Chris Williams | Mar 13, 2025 | Blog, Bookkeeping Tech, Resources & Downloads, Small Business Stories
Picture Alex, founder of a growing environmental consulting firm, comparing bookkeeping software options on her laptop. “I know I need something better than spreadsheets,” she mutters, “but how do I choose between all these options?” Choosing the right bookkeeping & accounting software for consultants can feel overwhelming if you’re like Alex. Let’s cut through the confusion.
Understanding What Matters
Consulting firms have unique financial needs. Through their work with over 175 professional service firms, System Six has found that consulting businesses need particular capabilities in their bookkeeping software. You’ll want to track project profitability, allocate time and expenses efficiently, create professional invoices, and see your real-time cash flow. Most importantly, your software should play well with other business tools you use daily.
The Top Contenders
1. QuickBooks
QuickBooks Online is System Six’s top recommendation for most consulting firms. “QuickBooks Online forms the backbone of our client’s financial systems,” explains Tim from System Six. Its robust feature set and extensive integration capabilities make it ideal for consulting firms.” The software excels at project and class tracking, offers strong reporting capabilities, and grows alongside your firm. While its interface can initially feel overwhelming, proper setup and guidance can transform it into a powerful ally for your business.
2. Xero
For firms with international operations, Xero offers a compelling alternative. Its multi-currency handling and intuitive interface make it particularly attractive for firms across borders. One System Six client who switched to Xero praises its clean interface and excellent bank reconciliation features. However, compared to QuickBooks Online, Xero offers fewer US-specific features and a more limited selection of third-party integrations.
3. FreshBooks
Smaller consulting practices (<$400K in revenue) might find FreshBooks hits their sweet spot. It shines in time tracking and professional invoicing, with an interface that won’t send you reaching for the aspirin. Yet, as your firm grows, you might find its reporting capabilities and basic accounting features somewhat constraining.
4. Sage Intacct
Sage Intacct enters the conversation for consulting businesses scaling beyond $20 million in revenue. It offers sophisticated financial management features that larger firms need, though its significant investment requirement and steep learning curve make it overkill for smaller operations.
Making It Work
Having the right software is just the beginning – the implementation transforms it from a tool into a game-changer. As one System Six client shares,
“They revamped our whole accounting system into accurate and dependable practices. They take on the entire setup and effectively act as consultants until your accounting operations run smoothly.”
The setup phase proves critical. Many firms stumble by trying to configure these tools without proper expertise. Working with experienced partners like System Six ensures your chart of accounts reflects consulting industry best practices, your project tracking captures the right metrics, and your automation saves time rather than creating headaches.
Your accounting software needs will evolve as your firm grows. Quarterly reviews of your financial systems help ensure they continue supporting your business effectively. “I don’t have to think about my accounting anymore,” one System Six client notes. “It’s just taken care of seamlessly.” This peace of mind comes from combining the correct software with expert implementation.
Making Your Choice
When selecting your software, consider your firm’s current size and growth trajectory. A solo consultant’s needs differ vastly from those of a 50-person firm. Think about which features you genuinely need today and which you might need tomorrow. Consider your budget not just for the software but also for proper implementation and support.
Remember Alex from our opening? She ultimately chose QuickBooks Online, which she implemented with System Six’s guidance. “Now I actually understand our numbers,” she says. Instead of wrestling with basic bookkeeping, I’m using financial insights to drive decisions.” Her story could be yours, too.
The right combination of software and expertise can transform your financial operations from a burden into a strategic advantage. Consider partnering with experts who can help you not just choose the right software but implement it in a way that gives you back your evenings and weekends. After all, you became a consultant to solve complex problems for clients, not to become an amateur accountant.
by Chris Williams | Mar 13, 2025 | Blog
The desk lamp casts a lonely glow across scattered receipts, expense reports and an inbox that’s even more cluttered. It’s 9 PM, and instead of preparing tomorrow’s client presentation, you’re wrestling with reconciliations and other accounting items way beyond your expertise. For many consulting firm owners, this scene feels painfully familiar.
The True Cost of Manual Financial Management
Consider this: most consulting firm owners spend 15-20 hours monthly on financial administration. That’s not just time lost – it’s revenue sacrificed. Those hours could generate $3,000-5,000 in billable work at typical consulting rates. Instead, they’re consumed by tasks that modern technology and the right experts could handle automatically.
“I’d spread papers across my dining room table every Sunday night and sort through a messy inbox, trying to make sense of the week’s transactions while my family watched movies in the next room,” shares one consulting firm owner who later partnered with System Six. “I knew I was losing thousands in billable hours, but I didn’t see another way.”
Let’s examine the five most time-consuming financial tasks and how modern solutions can transform them:
1. Transaction Categorization and Reconciliation
The traditional approach of manually categorizing expenses and reconciling accounts consumes hours weekly. One System Six client admitted spending every Monday morning sorting through the previous week’s transactions—time that should have been spent with clients.
Properly configured, today’s cloud-based systems can categorize transactions automatically with remarkable accuracy. “System Six revamped our whole accounting system into accurate and dependable practices,” shares a client. Now, I can pull up real-time insights from my phone between client meetings.”
2. Invoice Creation and Collection
Creating custom invoices, tracking payments, and following up on overdue accounts traditionally require meticulous attention. Many consultants spend hours each month crafting invoices and chasing payments.
Modern automation transforms this process entirely. As one System Six client notes, “They’ve automated our invoicing workflow completely. Now I can generate professional invoices with one click, and the system tracks payment status automatically.”
3. Expense Report Processing
The old way is collecting receipts, manually entering data, checking compliance, and reimbursing employees. The new way is mobile apps that capture receipts instantly, automated approval workflows, and direct integration with accounting systems.
“Since implementing automated expense tracking through System Six, we’ve cut our processing time by 80%,” reports a consulting firm owner. “No more lost receipts or delayed reimbursements.”
4. Compliance and Tax Management
Tax deadlines and compliance requirements keep many consultants awake at night. Missing key dates can result in penalties, while incorrect filings can trigger costly audits.
“System Six has done wonders for my stress level,” shares another client. “They’ve created automated systems that track every deadline and requirement. I no longer worry about compliance – it’s all handled automatically.”
5. Financial Reporting and Analysis
Generating accurate financial reports traditionally meant hours of spreadsheet work and manual calculations. Many consultants simply couldn’t spare the time, operating with limited visibility into their financial health.
Modern systems generate real-time reports automatically. “Now I understand our numbers,” says a System Six client. “Instead of wrestling with basic bookkeeping, I’m using financial insights to drive decisions.”
The Power of Professional Partnership
While technology enables automation, implementing it effectively requires expertise. System Six has helped hundreds of consulting firms transform their financial operations. They’re not just vendors – they’ve become part of our team, helping us develop better financial processes. With System Six, you get a dedicated team of financial experts who will guide you through the entire process, from setup to ongoing support.
The results speak volumes: “We’ve grown 40% this year because I can focus on clients instead of paperwork,” reports a consulting firm owner who made the switch. “They take on the entire setup and effectively act as consultants until your accounting operations run smoothly.”
Imagine Tomorrow
Picture walking into your office tomorrow knowing your finances practically manage themselves. Your books are always current, your tax deadlines are tracked automatically, and you can instantly access any financial insight you need. What would you do with those extra 15-20 hours each month?
One System Six client answered that question definitively: “Since automating our finances, I’ve landed three new major clients. Those deals happened because I could focus on relationships instead of reconciliations.”
Your time is too valuable to waste on manual financial tasks. Modern solutions exist to automate these processes; experienced partners like System Six can implement them effectively. The question isn’t whether to automate – it’s how much longer you can afford not to. With automated financial management, you’ll not only save time but also reduce errors, improve compliance, and lower your stress levels. The benefits are clear, and the time to make the switch is now.
Ready to reclaim your evenings and weekends? The transformation starts with a single step. Consider how many billable hours you’ll reclaim when your financial processes run themselves. The future of consulting isn’t about working harder – it’s about working smarter. If you’re ready to take that step, contact System Six today and start your journey towards financial efficiency.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
by Chris Williams | Mar 13, 2025 | Blog
Marcus checks his phone during a client meeting break, and his stomach tightens. There are three overdue invoice reminders from his contractors, two urgent messages from his office manager about upcoming payroll, and an email from his biggest client requesting a project timeline extension – with payment terms to match. Despite his firm’s growing client roster and stellar reputation in environmental consulting, these moments of financial anxiety have become all too familiar.
The cash flow challenge in consulting isn’t just about having enough money in the bank. It’s a complex web of timing, tracking, and tough decisions that can make or break even the most promising firms. Let’s uncover the hidden costs that poor cash flow management inflicts on consulting businesses – far beyond the balance sheet.
The Perfect Storm: Why Consulting Firms Struggle
Consulting firms face a unique set of cash flow challenges. Large corporate clients often demand extended payment terms – Net-30, Net-60, or Net-90. Meanwhile, your team members expect paychecks every two weeks, and contractors need timely payments to maintain good relationships. This misalignment creates constant pressure on your working capital and ultimately your bank account.
But a more profound issue lurks beneath the surface: the fixed-fee project trap. “We thought we were making money on every project until we dug into the numbers,” admits Tom, a strategy consultant who partnered with System Six. “We had no reliable way to track time against projects, so we couldn’t see which engagements were profitable.”
This widespread problem stems from consulting firms’ resistance to implementing rigorous time-tracking systems. Teams focus on delivering value to clients, often viewing detailed time tracking as administrative overhead. Yet without this data, firms can’t accurately measure project profitability or resource utilization – critical components of healthy cash flow.
The Invisible Drain on Your Business
Poor cash flow management costs extend far beyond late payment fees or emergency loans. Here’s what’s really at stake:
Professional Reputation
Word spreads quickly in professional networks when you can’t pay contractors on time. One System Six client shared, “Before controlling our cash flow, we lost several excellent contractors because of payment delays. It took months to rebuild those relationships.”
Growth Opportunities
You can’t seize new opportunities without reliable cash flow. Imagine turning down a dream project because you can’t afford to staff up quickly enough. “We had to pass on a major contract last year because we didn’t have the cash buffer to bring on the necessary specialists,” reports another consulting firm owner.
Team Morale
Constant cash flow stress trickles down to your team. Quality suffers when project managers worry about budgets instead of focusing on client outcomes. One firm reported spending 15-20 hours monthly just managing cash flow – time that should have been spent serving clients.
Breaking the Cycle
Forward-thinking consulting firms are tackling these challenges head-on. Here’s how:
Implement Robust Project Economics
Modern cloud-based systems make tracking time, resources, and project profitability easier than ever. “System Six revamped our whole accounting system into accurate and dependable practices,” shares a client. “Now I can pull up real-time insights about project profitability from my phone between client meetings.”
Automate Cash Flow Management
Stop relying on spreadsheets and manual tracking. Today’s tools can automatically categorize transactions, forecast cash positions, and alert you to potential shortfalls before they become crises. As one System Six client notes, “They’ve automated our invoicing workflow completely. Now I can generate professional invoices with one click, and the system tracks payment status automatically.”
Build a Culture of Financial Awareness
Help your team understand the connection between accurate time tracking and firm health. When everyone sees how their efforts contribute to project profitability, they’re more likely to embrace necessary processes.
Taking Control of Your Financial Future
Imagine walking into your office tomorrow knowing exactly where your cash flow stands, which projects are profitable, and when you can expect every payment. This isn’t just a dream – it’s the reality for consulting firms that have tackled their cash flow challenges head-on.
One System Six client said, “Since controlling our cash flow, I’ve landed three new major clients. Those deals happened because I could focus on relationships instead of reconciliations.”
Your firm’s financial health doesn’t have to be a source of constant anxiety. With the right systems, support, and mindset, you can transform cash flow management from a continuous worry into a strategic advantage. The first step? Acknowledging that the actual cost of poor cash flow management isn’t just financial – it’s the opportunity cost of what your firm could become.
Take action today. Your future self will thank you for it.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
