With a variety of approaches to take, we’ve brought together a panel of BigTime and Sage Solution Consultants to help you evaluate the best path forward for your firm. 

View our webinar to learn: 

• If you’re a good fit for BigTime, Sage, or both 
• 3 ways we commonly see PS firms leverage the integration to scale 
• Overview of how the solutions can work together

Watch our webinar to learn: 

• Common reasons people outgrow QuickBooks
• How to know if it’s time to make the transition to Sage for GL
• What is PSA software? 
• Efficiencies of combining GL + PSA software capabilities 

Resource management software can help you view and manage resource utilization and allocation, send notices when staff is assigned to a project, and allow you to search the skills available within your organization. It’s pretty easy to see how resource scheduling software can help you better drive the utilization rates of your staff to your current and future projects, thus making the organization more efficient and effective.

Looking for another reason why you should make use of resource management software? When used correctly it can really help reduce employee turnover and improve employee engagement.  

Using Technology to Improve Employee Experience 

Besides issues with one’s manager, people are likely to leave an organization due to a lack of opportunity. Employees today are looking for employment where they can learn and gain experience in newly acquired skills, move to projects they find interesting, and possibly travel.

Now it is unrealistic to think that an employer can be everything to everyone, and I believe that most employees understand the limitations their managers have in defining and managing project teams. What I think is missing in many organizations is the means of giving their employees a voice in the resource decision-making process.

Sure, organizations use strategies such as goal setting and appraisals to have conversations about the desires of an employee. Unless your team is less than a handful of people, when you need to make resourcing decisions you aren’t likely to remember, or even know, the desires of your team members that may have been recorded during these events.

Resource management software allows employees to continually update their skill listings, indicate experience goals, communicate the desire for a new opportunity, and can indicate to those who staff project positions whether they are willing or able to travel — all helping to improve employee retention

Giving your employees an effective means to communicate to you their skills and desires doesn’t guarantee an employee utopia, but giving them an active voice in the resource management process will reduce an employee’s frustrations that often result in them searching out for greener pastures.

Long story short — one needs to add the costs associated with attrition to the reasons why you should have resource management software. 

Optimize Your Team’s Performance with Resource Management Software

BigTime’s resource management software streamlines project planning, allocation, and tracking to optimize team productivity and project success.

By efficiently managing and allocating resources, BigTime ensures that employees are appropriately assigned to projects that align with their skills and interests. The platform also allows for better workload balancing, preventing burnout and stress associated with uneven work distribution.

With resource management software from BigTime, you can: 

• Allocate resources based on skills, experience, and availability to increase billable hours and profitability.
• Monitor resource productivity in real-time to support continuous improvement.
• Match skills and competencies to projects based on detailed staff records.
• Monitor skills gaps and identify training needs to support individual growth and career progression.
• Visualize resource availability, capacity, and utilization with customizable dashboards.
• Improve hiring by forecasting skills requirements for upcoming projects.

Amidst the turbulent economic climate, consulting firms are often among the first industries to feel the effects and are left to tackle these challenges head-on. Despite the difficulties, there is a glimmer of hope as with every downturn there will once again be an uptick, and the professional services industry is often able to catch the first wave of recovery. For this reason, being positioned to swiftly bounce back becomes a differentiating factor. 

During the downturn, when there is excess time and capacity, seizing this opportunity can be truly transformative for organizations. By embracing this moment, consulting firms can bring about profound changes that propel their businesses toward success.

 In this blog, we’ll explore helpful advice on how consulting firms can strategically concentrate their efforts to remain focused on growth given by two seasoned industry pros — Founder of Collective 54, Greg Alexander, and BigTime Software Founder and CEO, Brian Saunders. 

Keep on reading to learn their advice on what you need to prioritize, implement, and work on at your firm in order to see it grow and thrive for years to come.

Track the Right Metrics for Effective Forecasting

Scaling a professional services firm presents a strategic challenge that can be effectively addressed through effective forecasting and project profitability tracking. 

By sharpening their forecasting skills, firms can align revenue and expenses more accurately, reducing the risk of financial imbalances and unexpected challenges. This involves having the proper visibility to forecast revenue, profitability of projects, and capacity planning.

These three types of forecasts provide insight into potential hills and valleys in the business landscape. By incorporating the four types of analytics shared below into their forecasting process, firms gain valuable insights to drive sustainable growth and adapt to future scenarios.

1. Descriptive analytics delves into past performance data, shedding light on historical patterns and outcomes.
2. Diagnostic analytics takes a deeper dive into the factors influencing past results, facilitating a better understanding of influential elements.
3. Predictive analytics leverages historical data to project future trends and potential outcomes, enabling firms to prepare for and adapt to future scenarios.
4. Prescriptive analytics not only predicts future trends but also provides actionable strategies and recommendations to optimize performance and drive growth.

Extracting valuable data on profitable areas enables well-informed decisions regarding resource allocation and service improvements. Analyzing project profitability refines scoping practices, ensuring projects align with available resources and yield higher returns. Armed with this knowledge, firms can optimize their pricing strategy to accurately reflect the value delivered to clients, attracting more business opportunities and positioning themselves for successful growth in a volatile market. 

By combining effective forecasting and project profitability tracking, professional services firms can navigate economic challenges with resilience, making informed decisions that foster sustainable growth in trying times.

Be Thoughtful in How You’re Designing Services

As markets fluctuate and client needs evolve, it’s important to adapt and innovate to stay competitive. Being thoughtful in how you’re designing services becomes paramount, as it allows professional services firms to proactively respond to emerging trends, anticipate client demands, and tailor their offerings with precision to meet the evolving needs of their customers. By carefully considering the changing landscape and incorporating client feedback, firms can ensure their services remain relevant, impactful, and ahead of the competition.

By implementing the strategies below, professional services firms can maneuver through economic uncertainty effectively and position themselves for sustainable growth.

Client-centric approach: Tailor services to address clients’ evolving needs and challenges, ensuring your offerings remain relevant and valuable in the current climate.

Value-based pricing: Determine pricing based on the value and impact your services bring to clients, emphasizing the benefits they will gain during challenging times.

Scalability considerations: Design services that can be scaled up or down as per demand, providing flexibility to accommodate fluctuations in client requirements.

Optimizing Staff Utilization is Crucial for Continued Growth and Success

Avoid senior-level staff doing junior-level tasks: Work on delegation and the appropriate leverage ratio to assign tasks according to expertise. This allows senior staff to focus on high-value strategic initiatives while delegating routine tasks to junior team members.

Foster growth: Empower junior staff by providing them with opportunities to learn and grow, building a resilient and skilled workforce for the future.

Optimize efficiency: Ensure that the most experienced professionals are utilizing their time efficiently, maximizing productivity during challenging times.

Prevent Project Pipeline Falloff with Cost-Effective Lead Generation  

While there is an understandable reluctance to spend non-billable resources on bringing in new clients, it still needs to be done. There is a light at the end of the tunnel and you need to be prepared for it.

To ensure a steady project pipeline and sustainable growth, five lead generation channels have proven effective and cost-efficient for other firms. Among these channels, expansion revenue stands out as a game-changer.

Below we list all five in order of priority, in terms of time allocation. 

1. Expansion revenue: To optimize cost efficiency and reduce the need for additional salespeople, consultants should proactively identify opportunities to expand services with existing clients. Often, consultants engaged in day-to-day work with clients come across new possibilities, but they may overlook them due to their focus on meeting deadlines and budgets. Encouraging active listening and recognizing potential new projects, Greg recommends implementing an opportunity quota. By providing incentives for consultants to pay attention to client’s needs and propose new projects, the company can tap into hidden growth potential within existing accounts.
2. Referral generation: Generating referrals is crucial for business success in both prosperous and challenging times. During downturns, investing extra effort in generating referrals becomes even more critical. Satisfied clients who refer others to your services can significantly boost your client base and reputation.
3. Word of mouth: A powerful lead generation tactic involves building a reputation in the marketplace that attracts potential clients through word-of-mouth. If you find that word-of-mouth referrals are insufficient, it might indicate an underinvestment in marketing efforts.
4. Inbound: Demonstrating expertise through content marketing is vital in the professional services industry. Providing valuable content to your target audience can establish your firm as a thought leader, attracting potential clients who seek your expertise.
5. Outbound: While challenging and sometimes expensive, outbound marketing is essential to bolster the pipeline with potential clients. Coverage is critical and ensuring that there are enough leads in the pipeline to match income statement requirements is vital for business success. Closing deals effectively is a key aspect of maintaining a healthy revenue stream.

Use Technology 

In navigating today’s economy, professional services firms can adopt strategic approaches to maintain profitability and optimize productivity using technology designed to do just that. Below are three of the many ways technology can boost efficiency, keep you informed, and ready to make any necessary actions. Remember, technology works 24/7 to help you stay ahead and stand out in the industry. 

Strategic Cost Management
Carefully managing costs is key to sustaining profitability. Firms can identify areas where cost savings can be achieved without compromising the quality of services. This may involve optimizing internal processes, renegotiating vendor contracts, or implementing more efficient technology solutions.

Embrace Automation
Implementing automation tools, like Professional Services Automation (PSA) software, can significantly streamline repetitive tasks, reducing manual effort and freeing up valuable time for staff to focus on necessary client work. Automation enhances efficiency and productivity, especially during uncertain times when resources may need to be allocated strategically.

Enhance Collaboration
Utilizing digital platforms for seamless communication and project management fosters effective collaboration among remote teams. In the face of economic uncertainty, such platforms enable teams to work together efficiently, ensuring that projects progress smoothly and client expectations are met.

What is PSA software? We’ve got you covered. Explore the benefits in our guide.. 

Embrace Diversification

Embracing diversification is crucial for the strategic growth of a professional services firm. As the business landscape evolves, staying adaptable and resilient becomes vital. Expanding service offerings is a vital step in exploring opportunities to cater to different industries or address emerging needs in the market. By broadening the client base to target a diverse range of clients, the firm can reduce reliance on a single industry or client segment, safeguarding against fluctuations in specific sectors. This not only helps mitigate risks but also positions the firm for sustainable growth by tapping into new markets and clientele.

To make well-informed decisions, conducting thorough market research is essential. This research helps identify underserved industries or niches with growth potential, enabling the firm to adapt and capitalize on new opportunities, ultimately bolstering its resilience and competitiveness in the face of uncertainty. Furthermore, embracing diversification fosters a culture of innovation and creativity within the firm, encouraging teams to think outside the box and explore new avenues for growth.

Eliminate Some Assumed Tasks for Leaner Operations 

It’s necessary to streamline operations and optimize resource allocation in order to boost efficiency. By eliminating assumed tasks through a thorough task evaluation, firms can assess the necessity and impact of each activity, removing non-essential or redundant tasks that consume valuable resources. Prioritizing core competencies becomes paramount as the firm focuses on delivering services that align with its strengths, avoiding distractions that may divert resources from core business activities.

Creating a lean operational structure further enhances efficiency by removing unnecessary complexities and optimizing costs. To achieve these objectives, take advantage of Professional Services Automation (PSA) software like BigTime that can streamline processes, increase productivity, and provide valuable insights into resource, project, and financial management. Additionally, seeking support and guidance from industry-specific groups like Collective 54 can provide valuable expertise and resources to help professional services firms thrive in challenging times. With the right tools and networks in place, firms can proactively position themselves for growth and navigate economic uncertainties with confidence.

Watch our panel discussion to understand what striving for sustained excellence will look like for your business, and gain a playbook of strategies that will equip you to refocus your organization on growth. Collective54 Founder and BigTime Software CEO will be sharing their experience around: 

• Scalable packaging of service options
• Lead generation tactics 
• Optimized project & resource planning
• Action-driven insights from financial data

Please come prepared with questions! There will be 15 minutes for Q&A at the end of the webinar to dive deeper into the topics discussed.

Join our webinar discussion on why rewarding utilization might be harmful to the goals of your company’s culture, and other facets to consider for consultant’s compensation plans. We’ll walk through a new model of a plan that supports organizational growth and provide a spreadsheet template for your company to test out.

Introduction to Software Implementation

Evaluating Professional Services Automation (PSA) software can come with its own set of challenges. With many options and deciding factors to sort through, it can feel like a daunting process. One of those important deciding factors for what PSA software option is right for your team and organization is PSA software implementation. 

The effectiveness of PSA software ultimately depends on the success of its implementation and its adoption. A well-planned and executed implementation strategy can help ensure that the software is rolled out effectively and users are trained properly. How good is the software if no one wants to use it? A good implementation process acts as insurance, protecting your investment. 

On the other hand, a poorly executed implementation strategy can lead to delayed projects, cost overruns, and low user adoption. It can also lead to low engagement, incorrect usage, or even rejection of the software.

It’s essential to evaluate a software provider’s implementation methodology, customer support, training, and any potential costs or risks associated with implementation. 

But before we get into implementation, it’s important you read the first part of this series, Buyer’s Guide: How to Choose the Best PSA Software for Your Business. 

In the guide, we discuss:

1. The benefits of PSA software 
2. Things to consider during your search
3. The steps to evaluating and selecting the best PSA software for your organization 
4. Questions to ask vendors 
5. Who to include during the search process
6. PSA software evaluation templates to use in your research

Now it’s time to dive into PSA software implementation and why it’s such a key piece of the software evaluation puzzle.

6 Things To Look for When Evaluating PSA Software Implementation Processes

1. What dedicated roles and resources will be available to you and your team during the implementation process? 

Implementation is a team effort and a dedicated implementation team can offer you invaluable guidance. In our first guide, we stressed the importance of selecting software that is built to the way your industry functions. This value goes even deeper in the implementation process if you’re able to have access to a team of professionals with years of knowledge as to how other firms within your industry have set things up and seen success.

Think of the different roles on this team acting as a consultative group, using their industry expertise and know-how to get you the best results to help drive growth and bottom lines. 

An implementation team should have clear objectives and milestones and communicate regularly with your organization to provide updates on progress and any issues that may arise. Lastly, a majority of these roles should go beyond the implementation process and remain your partners throughout your time using the software.

Be sure to ask the software vendor what dedicated roles will be available to help you throughout implementation and after go-live. Software vendors may offer you a mix of the following roles: 

Implementation Manager

This person is typically a dedicated resource for your account to help with account setup, configuration, and training until you are ready to “go-live” with your new solution. Think of this role as your project manager to get you up and running from the start. 

Data Import Specialist 

If you have a lot of necessary historical data to be converted into the new system, many vendors will have a dedicated person to take this burden off your plate. They’ll work with you on getting all data together, wherever it may be, and making sure it successfully transfers over in a way it makes sense for your organization. For example, if you have a specific way of naming something, this specialist will make sure it’s the same in the new system. 

Solution Consultant 

These consultants are highly specialized in mapping your business processes to updated best practices. They’ll ask questions and hear from your team in order to understand your current state of business. They’ll then take into consideration your ideal state and apply your current processes to the tool to get the most value out of the software. They’ll be your guide in improving internal operations and customization.

Customer Success Manager

The customer success manager ensures you’re getting the most out of your investment. They’ll fill you in on new product releases or untapped benefits to help you succeed and see the most ROI from the solution. This role typically has the most long-standing relationship with your firm after implementation to make sure you are able to continue to grow within the software.

Look for: a vendor that assigns dedicated roles and resources to the implementation process, such as implementation specialists and technical support staff. 

2. Will there be ongoing product updates that help support your business?

There’s nothing worse than software that starts to fail on itself due to a lack of maintenance and updates. Look for a vendor that is constantly improving and proactively monitoring the health of the solution so that your firm can continue to operate smoothly with confidence in the software. This can include regular software updates, security fixes, and new features that improve the software’s functionality and usability. 

Look for: a vendor that provides ongoing maintenance to catch issues before they arise, such as software updates, maintenance, and proactive security monitoring.

3. Is there a formal onboarding process or will you have to do a lot of it on your own?

A formal and well-structured onboarding process can help ensure that everyone in your organization is trained and ready to use the new software. It’s important to have a clear and concise plan outlining the necessary steps for employees to learn the software so everyone can be on the same page as far as expectations and timelines. We’ll talk more about what this process should look like later on!

Look for: a vendor that provides a formal onboarding process, which may include documentation, training sessions, and other resources.

4. Will you have access to a customer support team when you need help? 

When issues arise, you need to be able to get in touch with a customer support team quickly and easily. A good customer support team should be knowledgeable about the software and be able to provide prompt and effective solutions to any problems that may arise and be committed to ensuring your satisfaction with the product. Make sure you’re comfortable with the communication options and availability of the vendor you choose.

Look for: a vendor that offers access to a dedicated customer support team who are available either through phone, email, or live chat support, ready to solve any issue you have.

5. What kind of self-help and learning resources will be available to your team?

Self-help resources and learning materials can be incredibly helpful for employees who are learning to use new software, or maybe just need a refresher. These resources are especially helpful when new software updates are regularly being rolled out and can help reduce the need for customer support. Another perk? This kind of learning gives you a head start with “how-tos” so the time spent with your dedicated implementation team can act more as a consultative meeting, reviewing best practices and any questions your team may have.

Look for: a vendor that provides a knowledge base, user guides, video tutorials, and other resources that your team can use to troubleshoot issues or learn new features.

One great example of how BigTime promotes this vital part of the implementation process is through BigTime Academy. BigTime Academy offers “how-to” videos that give you a visual aid in a live environment. You’re able to watch a BigTime team member access and use features, from timers to invoices.

6. How will you train new hires on using the software?

Training for new hires is an important aspect of software implementation, especially as organizations grow and change over time. New employees will need to be trained on the software to ensure that they are able to perform their job responsibilities effectively and efficiently. Another perk of BigTime Academy is that it offers course certifications for people new to the software. Having this kind of training takes the burden off of your admin’s plate and you can rely on BigTime to help everyone on your team be educated and skilled when it comes to using the software. 

Look for: a vendor that provides training resources for new hires to take the weight off your team internally. 

How to Facilitate the PSA Software Implementation Process Internally

If you recall from our first Buyer’s Guide: How to Choose the Best PSA Software for Your Business, we discuss the importance of involving stakeholders in the process of evaluating PSA software. During the discovery phase of evaluation, we suggest you ask different departments within your organization questions about what they’re looking to get out of the software and what their needs are.

Circling back to the knowledge from those discovery sessions will help make sure those needs are being properly accommodated during implementation. Having these needs/questions documented can also help implementation specialists answer specific  questions and prioritize different training sessions for each stakeholder. It can also get your team excited about using the new software and gain more staff buy-in.

We’ve outlined below the different departments that make up a typical professional services organization, highlighting which roles should be included during the implementation process, and what features they’ll need to be well-educated on.

Operations

Review their needs and include them in training on: 

• Budget tracking and management
• Time and expense submissions 
• Review and approval processes 
• Staff capacity planning
• Reporting dashboards
• Adjusting user rights
• Integrating to accounting software (QuickBooks, Sage Intacct, Intuit Lacerte)
• Integrating to Customer Relationship Management (CRM) platforms (Salesforce, Hubspot)
• Integrating to communication software (Slack, Google apps)

Project Managers

Review their needs and include them in training on: 

• Budget tracking and management
• Review and approval processes 
• Staff capacity planning
• Tracking budget vs actuals
• Integration to project management software (Jira, Asana, Smartsheet)

Finance 

Review their needs and include them in training on: 

• Billing models configuration
• Invoice branding
• Customizing invoice templates to client needs
• Adding expense receipts
• Review and approval workflows for invoices
• Payment collection methods 
• Reporting dashboards
• Integrating to accounting software (QuickBooks, Sage Intacct, Intuit Lacerte)

Leadership

Review their needs and include them in training on: 

• Utilization rate tracking at project and firm level
• Reporting dashboards of project vitals
• Job costing and project margin reports
• Measuring project profitability
• Revenue forecasting

Front Line Staff

Review their needs and include them in training on: 

• Submitting time and expenses
• DCAA time tracking compliance (for government contractors)

PSA Software Implementation Steps: Setting Goals & Milestones

Now you’re ready to begin thinking about your timeline. It’s best to find a vendor that has a crawl, walk, run approach to implementation. This approach helps you plan goals and milestones realistically so you’re not missing an invoicing cycle or overlooking important details. Because you’re not doing everything all at once, staff will also be less likely to feel overwhelmed and stressed. 

The best way to go about setting up your timeline is to work backward. Think about your endgame — do you need to be out of another system by a certain time? What’s your billing/invoicing cycle? Backtrack from there to think about when you need time tracked. For example, if you invoice at the end of the month, you’ll want time tracked for at least one month before that. Now that you have these rough dates in mind, it’s time to think about milestone mapping.

Below are 3 common milestones you’ll experience during PSA software implementation and questions you should keep in mind along the way.

Milestone 1: Pre Reqs 

Like anything, it’s important to start with the basics. This first milestone includes getting you up and running with project setup, resource management, and time and expense tracking. It’s all about getting you and your team set up with the fundamentals of PSA software and ready to use it. 

Project Setup: Things to Think About & Questions to Ask 

• Will you have a dedicated data implementation specialist to help you carry over existing data to the new system?
• Where is all your existing data?
• Do you have an accounting system in place?
• Are you using spreadsheets?
• What integrations do you need help syncing?

Resource Management: Things to Think About & Questions to Ask 

• How are you tracking budgets to projects?
• How are people designated to projects? 
• How are bill rates defined? (ex: project, client, staffers role)
• How often are you billing?
• How are you allocating resources to a project currently?
• Do you allocate project time vs. non-project time? 
• Are your projects an all-hands-on-deck approach or do you limit visibility per project per staffer? 

Time and Expense: Things to Think About & Questions to Ask 

• Is your work breakdown structure different from your client-facing statement of work?
• Is there any flexibility on where time and expenses are tracked?
• Are you able to leverage vendor expenses?
• What kind of workflows are there surrounding approval processes?
• How do you plan on training staff on entering time and expenses?
• Are you tracking holidays? 
• How often do you bill expenses? 
• How do you bill your customers? Timing/format

Milestone 2: End Game

What’s better than getting paid for you and your team’s hard work? This second milestone involves setting your organization up to send out invoices and receive payments using the data entered from the first milestone. 

Payments and Invoicing: Things to Think About & Questions to Ask 

• How do you create an invoice?
• What is your invoicing cycle?
• What are your must-haves on invoices?
• What do you want your invoices to look like?
• How do you apply a payment?
• How are you able to mark an invoice as paid?

• How do you take payments?
• How do you want to report on invoices/payments? 

Milestone 3: Last Step 

This last milestone uses all the data and information collected from your projects, the time and expenses entered, and invoices sent to create reports. These reports, if used correctly, can allow you to make faster and more informed business decisions. 

Reporting: Things to Think About & Questions to Ask 

• What does the reporting module look like?
• Can you customize reports?
• How can you share reports?
• What do the reporting user rights look like? Who can see what?
• What reports do you run monthly/quarterly/yearly?

• Who looks at these reports? 
• What are you trying to achieve with these reports? 

What PSA Software Implementation Looks Like With BigTime

We’re proud to say that BigTime has been ranked #1 in customer satisfaction and most implementable since 2018. We’ve maintained this top ranking through our dedicated U.S-based implementation and support team. This team includes an implementation manager, customer success manager, data import specialist, and solution consultant who cater your onboarding to your firm’s unique needs. 

As a BigTime customer, you’ll get access to helpful resources such as recordings of all your implementation sessions, how-to videos, an onboarding deck, articles, and webinars. We also provide ongoing assistance through a knowledge base library as well as a support team available to you every day.

Frequently Asked Questions About PSA Software Implementation

What is software implementation?

Software implementation refers to the procedures and processes required to transition software applications and tools from the planning and development stage to the production phase. It’s important to note that implementation extends beyond the go-live stage and includes important aspects such as user adoption, education, training, and potential software improvements and upgrades.

Why is software implementation an important factor in choosing PSA software?

Software implementation is a crucial factor in choosing PSA software because it determines how well the software will be adopted and used by the organization. The effectiveness of PSA software ultimately depends on the success of its implementation and its adoption.

What happens during software implementation?

Software implementation typically involves preparing for the process, installing the software, importing data, conducting training sessions, and providing support to employees as they begin using the software.

About the company

Aegis Project Controls’ mission is to improve the construction industry by providing project controls and technology solutions unlike any other in the world. Aegis offers a full scope of program and project controls services to be able to better serve clients at every touch point of the project.

Founded in 2006, Aegis has grown from a small team of passionate project controls professionals to the largest firm of its kind in the country, with offices throughout the USA and Europe. 

Overview

A lack of cohesion between Aegis Project Controls’ software systems made it difficult to track their time, invoicing, and billing effectively. To increase efficiency, improve cash flow, strengthen data accuracy, and enhance their reporting, Aegis searched for an integration between their accounting and project management software that would provide a single view into their entire business. 

With the BigTime + Sage Intacct integration, Aegis has seen:

• 50% decrease in financial administrative tasks 
• 50% reduction in billing process time

The Challenge

Aegis was struggling to track time, invoicing, and billing efficiently in multiple software platforms. With three different systems trying to work together, the process was “messy and tedious”. 

Other issues Aegis faced included: 

• Excess manual data entry and data transfers consumed weeks of their financial team’s time
• Frequent data inconsistencies due to managing data entry between systems
• Inflexible workflows that lead to a prolonged billing process, and hindered cash flow
• Consolidating reports was time-consuming and lacked needed details

The Solution

Aegis needed cohesion between their time, expense & billing software, and accounting system to seamlessly sync their projects, employees, and financial data.

They chose the BigTime + Sage Intacct integration to:

• Streamline workflows between multiple solutions, reducing financial administrative tasks by 50%
• Eliminate manual data entry, leading to a significant increase in the accuracy of financial data
• Decrease time to invoice by creating invoices in BigTime and syncing them to Sage Intacct
• Create accurate reporting that allowed multiple views into accounting across the organization
  

About BigTime Software

BigTime helps professional services organizations operate more effectively so they can better plan, manage, and get paid for client work. Our award-winning Professional Services Automation (PSA) software enables better project, finance, and resource management backed by robust analytics and reporting. 

Thousands of professional services businesses use BigTime to deliver exceptional results for their customers, ensure teams are able to focus on the work that truly matters and operate their businesses efficiently. 

See how BigTime can move your business forward. Visit bigtime.net and book a demo today.

Introduction: The Effect of Homegrown Systems When Trying to Scale a Consulting Business

Homegrown operation systems can be a double-edged sword for consulting businesses. On one hand, they can provide a level of customization and control that is difficult to achieve with off-the-shelf solutions. On the other hand, they can be costly in terms of both time and money, and can ultimately hinder success when it comes to scaling a consulting business.

When a homegrown system no longer meets the needs of a growing consulting firm, this can lead to pain points such as inefficiency, wasted time and resources, and lost revenue. In this post, we will discuss how to self-diagnose if your organization has outgrown its homegrown systems and processes, and the ROI you could be missing out on by not upgrading to a centralized, purpose-built system such as professional services automation (PSA) software.

Self-Diagnosis: How to Tell if You’re Outgrowing Current Systems When Scaling a Consulting Business

A large number of consulting firms still rely on homegrown software and spreadsheets, with Excel and Google sheets being some of the most widely-used applications. If your consulting firm is still utilizing a homegrown system, it’s likely that your internal operations are preventing your business from scaling to its potential.

There are several signs that can indicate an organization has outgrown its homegrown systems and processes. Some questions to ask and consider:

• Are we still working out of spreadsheets?
• Are we having difficulty scaling or adapting to changing business needs?
• Do we utilize inefficient or manual processes that lead to wasted time and resources?
• Is it complicated to track or report on professional services KPIs?
• Are there disjointed systems due to the challenge of integrating with other systems or technologies?
• Are we not yet profitable?
• Do we practice rudimentary time and expense capture?
• Is there a lack of real-time insights preventing timely and proactive decision-making?
• Is our financial visibility and control limited?
• Are we able to predict our financial performance?
• Rudimentary contract and risk management.
• Do we have lengthy invoice cycles that affect project profitability?
• Is our data collection incomplete resulting in no full picture of time and expenses related to accounts and individual projects?

Business process maturity is a concept based on optimizing core processes that include delegating tasks, budgeting, analyzing business data, monitoring progress, reporting performance, setting milestones, and tracking expenses. As professional services organizations (PSOs) move from manual processes to automated software, they often gain improved visibility into their operations at a variety of levels.

This can not only lead to increased performance and efficiency but also improved compliance with industry regulations for both internal and external stakeholders. When implemented correctly these improvements will enable businesses to grow and scale rapidly. If you recognize any of the above signs or your consulting business is positioned to progress to the next maturity level, the next step is to understand the extent of unrealized revenue and growth opportunities.

The Cost of Outgrown Systems on Professional Services Growth and Operations

One of the biggest costs of outgrown systems is wasted billable hours. When processes are inefficient or manual, consultants and employees spend more time on administrative tasks and less time on billable work. These tasks can be time-consuming and divert resources away from more important business activities, such as delivering great work and developing new business.

If your firm is not using PSA software, chances are, you’re working out of Microsoft Excel. The majority (22%) of non-PSA customers reported working out of spreadsheets, and 5 out of 8 Excel users also reported using more than 2 other solutions in conjunction. This means there is no one source of truth for their operations. Disjointed systems can lead to manual-entry mistakes, reduction in billable time and utilization, and even decrease in productivity and revenue.

Another cost to consider is the opportunity cost of using a homegrown system. By choosing to develop and maintain your own operation system, benchmarked data indicates less benefits when compared to consulting firms using a more advanced solution. This includes features and functionality that could help your consulting business operate more efficiently and effectively, as well as the ability to scale and grow more easily.

Growing a Consulting Business and Increasing ROI: The Benefits of Professional Services Automation (PSA) Software

The key to balancing all of the inputs that affect bottom-line profit is having the right systems and processes in place to measure and manage each of the different factors. For a professional services firm, the core system to manage the business is PSA software. It often sits between a CRM solution like Salesforce and accounting software such as QuickBooks or Sage. PSA systems manage the process of delivering work from planning and staffing projects through to professional services billing and recognizing revenue.

PSA solutions are an essential investment for growing professional services firms—an investment that can pay off handsomely when properly selected and thoughtfully implemented. They replace the stand-alone tools that helped a professional services firm get off the ground with a consolidated suite that fuels growth. Siloed time tracking tools, budgeting spreadsheets, project management systems, scheduling whiteboards, and invoicing processes can all be replaced in favor of an integrated solution that offers a single version of the truth.

Investing in PSA software can result in enormous amounts of time, cost and risk efficiency. By streamlining processes, you avoid duplication of data entry and other error-prone manual operations that saves time and money. You’ll also get the visibility and control you need to scale your business efficiently, allowing you to focus on strategic initiatives that drive growth. Let’s explore the benefits a bit deeper.

The data in the PSA Software Benchmark Report confirms that working solely out of Excel is a pain point for professional services firms. While it may be a daunting task, implementing PSA software can actually save firms time and money with its robust features and will continue to grow as they do.

Project Margin

PSA systems like BigTime help growing professional services organizations generate more profit per dollar of revenue generated in several ways. They provide real-time visibility into the health of projects so that corrective actions can be taken early on when the effects of those actions are magnified, rather than late in the game when extraordinary measures are more often required.

Excel spreadsheets can provide a snapshot of where project costs are at, but they lack the detail and insights into which resources are added to or removed from projects in terms of profitability. The resource scheduling components of PSA software ensure that just the right resource is in place on the right project at the right time. This ensures that more junior, higher margin resources are utilized when possible, and more senior, lower margin resources are leveraged only when necessary.

PSA solutions link together time and expense tracking with bill rate management and invoicing capabilities into a single project accounting system. Research from our PSA Software Benchmark Report showed firms that invested in PSA software get paid faster. While the industry average for collecting payments is about 45 days, 57% of PSA software customers say it takes less than 1 month to get paid–13% of those customers report receiving payment in as little as an hour.

BigTime customers who utilize our integrated payments processing solution, BigTime Wallet, report receiving payment in as little as 9.6 days on average – 5X faster than the industry average. By investing in PSA software, you get real-time dashboards that break down project expenses, configurable invoices and invoicing processes, and automatic invoice reminders so invoices go out faster.

These PSA features provide important control that ensures that every hour that can be invoiced to the client is billed properly, thus reducing sources of revenue leakage. PSA software also automates time tracking so that time logged is automatically integrated into the financials for each project which provides the visibility needed to accurately assess costs and profitability.

Without professional services automation in place, all of these factors, each seemingly small and insignificant, add up to less efficient organizations needing to generate more revenue in order to achieve the profit target than their more efficient peers.

Billable Utilization

Project margins and bill rates help translate profit into revenue and subsequently into billable hours. One of the most significant benefits a PSA solution provides is increasing billable utilization, which, in our model means that fewer billable people are needed to produce the same number of billable hours. Efficient resource scheduling, including understanding who has availability to work on other projects, is the key to improving utilization.

6.2% of professional services firms reported their PSA software increased billable utilization by 100%

PSA software enables organizations to satisfy staffing requests faster, schedule resources more tightly, and make more efficient use of available resources. This isn’t about wringing the last drop of sweat equity out of each employee. Solutions like BigTime take each individual’s skills, professional development goals, travel preferences, and more into account, which results in employees being happier in their jobs and improved employee attrition rates.

By integrating time and expense reporting into the same data system or platform, businesses will gain greater insight into how their resources are being allocated. A PSA tool allows managers to better assess project progress and streamline the process for tracking expenses and billable hours, which results in an increase in team productivity.

The key to that efficiency? Any PSA solution allows you to enjoy some of those gains. BigTime as your choice of Professional Services Automation software takes it to the next level.

In our recent BigTime PSA Software Benchmark Report, research indicated that professional services firms who implemented BigTime to improve project workflows in one seamless operating system saw a 52% average increase in productivity compared to other PSA software who are seeing an average 27% improvement. This increase in productivity helped to increase the number of billable hours generated by professional services organizations.

Average Bill Rates

Professional services firms always have to walk a fine line between maximizing bill rates and remaining competitive in their respective markets.

Professional Services Automation software provides detailed analyses on what it took to deliver projects in the past and what activities took more or less time than expected. It provides insight into which project managers were more or less successful at sticking to plans and budgets, and which projects resulted in unexpected rate attrition. Firms that have access to this wealth of historical analytics can turn it into a competitive advantage, and can use it to drive a comprehensive strategy to determine bill rates.

BigTime takes this data-driven strategy a step further by helping organizations understand where rate losses stemmed from. Starting from the sales process, through contract negotiation, and finally into delivery, BigTime’s rate realization model helps managers pinpoint problem areas. All these historical analytics, along with the ability to tightly manage the project delivery process, enables organizations to successfully win new work while still maximizing bill rates.

Percent of Billable Staff

Finally, PSA software helps to, well, automate your professional services organization. What that really means is that a lot of the mundane stuff—wrestling with spreadsheets, extracting and manipulating data, negotiating for staff, compiling manual status reports, hand-editing invoices, re-keying data, and more—gets streamlined into a single system. In turn, what this means is that organizations require less overhead to support their billable staff.

When we add together the reduction in billable resources needed to generate the revenue with fewer overhead personnel needed to support them, we end up with a smaller staff needed to generate a targeted profit. The difference in total number of staff needed to reach your profit goal is materially smaller in a more efficient organization.

By eliminating error-prone manual processes and replacing homegrown systems, PSA software lets you focus on what’s important: gaining the visibility and control you need to manage and grow your consulting business.

Case Study: A Real-World Example of How to Scale a Professional Services Business by Replacing a Homegrown Solution

One example of a professional services organization that was able to position itself for sustainable growth after implementing PSA software is the iFish Group.  The iFish Group is a technology-solution service company helping state and local government agencies and departments develop IT strategies. Prior to the upgrade, the iFish Group utilized a homegrown solution with a self-built time tracking system.

Scott Schriber, Director of Operations, estimated he was spending $5,000-$10,000 of billable time on internal processes and to update a homegrown time tracking system. He added that the company logged approximately $100,000 of billable time to develop it. Not only did implementing PSA software allow them to optimize billable time more efficiently, they were also able to dramatically improve: 

• How invoices were built, stored, and previewed
• Reconciliation between project finances in QuickBooks Online
• Time entry review processes
• Length of time needed for monthly invoices to go out

PSA tools are so essential to services businesses that they are used by 85% of the top-performing services firms, according to SPI Research.

Conclusion: Take Action to Improve Efficiency and Fuel Professional Services Growth

When switching from homegrown solutions like Excel to a professional services automation (PSA) tool, firms can focus more on scaling and less on mundane manual tasks. If your goal is scaling a consulting business, it’s important to be aware of the pitfalls that can come with outgrown homegrown systems and processes. By self-diagnosing the need to upgrade to a centralized system like PSA software, you can grow your professional services organization through increased ROI, improved efficiency, and reliable insights to make better decisions, faster.

Some of the key benefits include of replacing homegrown software with PSA software includes:

• Increased efficiency and productivity
• Improved scalability and adaptability
• Enhanced tracking and reporting capabilities
• Improved integration with other systems and technologies
• Increased billable hours and revenue

When considering replacing a homegrown operation system with PSA software, it’s essential to carefully evaluate the specific needs and circumstances of your consulting business. Start exploring the benefits that PSA software can provide to support your bottom-line profit and professional services growth—contact us for a custom demo today.

Frequently Asked Questions About Scaling a Consulting Business

How do you scale a consulting agency?

According to SPI Research, professional services organizations need a balanced approach to improving 5 Service Performance Pillars to achieve scalable success. Top-performing firms utilize integrated professional services automation (PSA) software to improve performance in each pillar, which include: 

1. Leadership – Vision, Strategy and Culture
2. Client Relationships
3. Talent
4. Service Execution
5. Finance and Operations

What are the KPIs for consulting firms?

The top 6 consulting metrics to consider are:

1. Recognized Revenue (Lagging)
2. Project Profitability (Lagging)
3. Resource Utilization (Lagging)
4. Sales Pipeline (Leading)
5. Scheduled Billable Hours (Leading)
6. Forecasted Revenue Recognition (Leading)

What is a homegrown system in consulting businesses?

A large number of consulting firms still rely on homegrown software and spreadsheets, with Excel and Google sheets being some of the most widely-used applications.

How do you grow a professional services company?

Scaling a consulting agency using professional services automation (PSA) involves implementing software tools to automate and streamline various business processes such as project management, time tracking, and invoicing. This can help improve efficiency, scalability, client management, and the financial health of a services organization.

What are benefits of replacing a homegrown system with PSA software?

Some of the key benefits include of replacing homegrown software with PSA software includes:

• Increased efficiency and productivity
• Improved scalability and adaptability
• Enhanced tracking and reporting capabilities
• Improved integration with other systems and technologies
• Increased billable hours and revenue

Find out: 

• Why organizations choose BigTime over different PSA software vendors.
• ROI benchmarks for implementing PSA software
• How BigTime improves project profitability across internal processes