Financial Modelling Tool for IT Services
As an IT services business owner, it’s crucial to understand the fluctuations in your cash flow throughout the year and know when to make key decisions. Brixx provides the financial tools you need to gain timely, actionable insights that will help drive your business growth.
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Model your IT services business in Brixx - see how quickly your finances can make sense!
We are working on creating this template in Brixx. Although it isn’t available just yet, you can follow the guidance below to help get started. If you need any further assistance, don’t hesitate to get in touch – we’re here to help!
Project Setup
- Project name: IT Services Consultancy
- Time period: Monthly (ideal for tracking client invoicing, expenses, and cash flow)
Income Components
- Component: Service Revenue
- Sub-components:
- IT Support Contracts (e.g., Monthly retainer for managed IT services)
- Small Business Package: £1,500/month (5 clients = £7,500/month)
- Enterprise Package: £5,000/month (2 clients = £10,000/month)
- Project-Based Consulting (e.g., One-off cybersecurity audit, IT infrastructure setup)
- Average project size: £8,000 (3 projects per quarter = £24,000/quarter or £8,000/month)
- Cloud Services Reselling (e.g., Reselling Microsoft 365, AWS services with a markup)
- Estimated profit margin: £3,000/month
- Software Development Services
- Custom web application development: £15,000/project (1 project per 2 months = £7,500/month)
- IT Support Contracts (e.g., Monthly retainer for managed IT services)
- Sub-components:
Expenditure Components
- Component: Operational Costs
- Sub-components:
- Salaries & Wages
- IT Consultants (2 at £5,000/month) = £10,000
- Support Staff (2 at £3,000/month) = £6,000
- Software Subscriptions
- SaaS tools (e.g., project management, cybersecurity, CRM) = £1,500/month
- Cloud Hosting Costs
- AWS, Azure, Google Cloud usage = £2,000/month
- Office Rent & Utilities
- Co-working space: £2,500/month
- Utilities & Internet: £500/month
- Salaries & Wages
- Sub-components:
- Component: Administrative Costs
- Sub-components:
- Marketing & Advertising
- Google Ads, SEO, content marketing: £2,000/month
- Legal & Accounting Fees
- Annual compliance and tax filing: £4,000/year (£333/month)
- Insurance
- Business liability, cyber insurance: £1,500/year (£125/month)
- Marketing & Advertising
- Sub-components:
Asset Components
- Component: Fixed Assets
- Sub-components:
- Office Equipment
- Laptops, servers, networking hardware: £20,000 (depreciated over 3 years)
- Software Licenses
- Long-term software licenses for development tools: £10,000
- Office Equipment
- Sub-components:
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- Component: Current Assets
- Sub-components:
- Cash Reserves
- Starting balance: £50,000
- Accounts Receivable
- Outstanding client invoices (estimated at 1 month’s revenue): £36,000
- Cash Reserves
- Sub-components:
- Component: Current Assets
Funding Components
- Component: Initial Investment
- Sub-components:
- Founder’s Investment
- Initial capital contribution: £50,000
- Founder’s Investment
- Sub-components:
- Component: Loans & Financing
- Sub-components:
- Startup Business Loan
- £100,000 at 6% interest, 5-year term (£1,933/month repayment)
- Startup Business Loan
- Sub-components:
Scenario Planning in Brixx
- Client Loss Scenario
- Model losing a major retainer client and its impact on cash flow.
- New Hiring Costs
- Forecast how hiring another IT consultant affects profits.
- Cloud Cost Increases
- Test rising AWS/Azure costs by 10% and how that impacts margins.
Dashboard & Reporting
- Cash Flow Report
- Track monthly income vs. expenses.
- Balance Sheet
- Monitor assets (cash, accounts receivable) vs. liabilities (loan repayments).
- Profit & Loss Statement
- Evaluate total revenue and operational costs to find net profit.
- Custom KPIs
- Gross Profit Margin = (Revenue – Direct Costs) / Revenue
- Recurring Revenue Percentage (from retainers vs. project work)
Who can use this Brixx template?
- IT service providers
- Managed service providers (MSPs)
- Freelance IT consultants
- Software and hardware support businesses
Brixx is a great tool for:
- Professionals responsible for financial planning and budgeting in IT services
- Business owners, accountants, and managers overseeing service pricing, revenue, and expenses
What are the benefits to IT services businesses?
Designed specifically for IT businesses, covering all financial aspects of service-based operations
Easily model cash flows, analyse service pricing, and manage operational costs and recurring revenue
Gain clear insights from charts and reports to assess profitability across different services
Quickly measure the impact of new income streams, such as consulting, managed services, or software sales
Instantly see results when testing different pricing scenarios, expanding teams, or investing in new technology
Strategic forecasting in Brixx
- Assess profitability by adjusting service pricing and contract-based revenue
- Showcase earnings potential and business growth to support loan applications
- Plan for software licenses, hardware purchases, wages, and operational costs
- Anticipate funding needs when expanding services or scaling operations
- Analyse market trends and their effect on customer demand and IT service pricing
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"Brixx is great for analysing at which point I can recruit new staff."
Nikki Bisel, Seafoam MediaGet started with the best financial projection software - today!
Financial modelling software is a crucial tool for IT services businesses, providing the insights needed to plan and manage finances with confidence. By forecasting costs and revenue, business owners can make informed decisions about pricing, staffing, and growth strategies.
Understanding market trends, refining pricing structures, and planning for recurring revenue streams all contribute to long-term business success. With over two decades of experience in business modelling, Brixx offers a powerful solution designed to help IT businesses streamline financial planning and strategy.
By leveraging expert financial modelling software like Brixx, IT service providers can optimise cash flow, refine their financial approach, and scale their business effectively.