Understand what your projects are earning, not just what has been billed.
Project-based firms need accounting systems that connect financial activity with how work is actually planned, billed, managed, and reported.
Stirn & Associates helps architecture and engineering firms connect direct labor, overhead, utilization, billability, earned value, WIP, project profitability, and financial reporting so management can see how project performance is translating into firm performance.
How We Can Help!
Built for Project-Based Firms
Architecture and engineering firms have different accounting demands than traditional service businesses. Project structure, billing, labor and cost capture, reporting, and accounting workflows need to work together.
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Structure projects and phases so the accounting follows how the work is actually managed. This includes direct labor, consultants, reimbursable costs, work in process, unbilled revenue, budget-to-actual performance, and project-level profitability.
The goal is to make project financials usable during the project, not only after the job is complete. -
A&E profitability depends heavily on understanding the true cost of labor.
We help review the structure behind overhead rates, indirect costs, labor burden, break-even rates, billing multipliers, and related rate assumptions so management can see whether pricing and staffing decisions are supporting the margins the firm expects.
This also includes identifying distortions caused by misclassified labor or expenses.
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Utilization and billability are not simply timekeeping statistics; they are key drivers of firm economics.
We help establish clear definitions and reporting around:
available labor hours
direct/project hours
billable hours
utilization
billability
staffing mix
labor budget versus actual
The objective is to connect employee time, project performance, and firm profitability in a way management can actually use.
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Billing does not always tell you what a project has actually earned.
We help management compare project progress, labor consumed, budgeted hours and costs, earned value or earned revenue, actual billing, and expected project margin.
This creates earlier visibility into projects that are consuming too much labor, falling behind budget, or generating less margin than expected.
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A profitable project can still create cash-flow problems when billing, WIP, collections, and project progress are out of sync.
We help improve visibility into:
billing status
unbilled work
WIP
accounts receivable
DSO and collections
project backlog
consultant and reimbursable costs
future workload and revenue visibility
The goal is to connect project activity with the cash the firm ultimately collects.
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The accounting platform should support the way the firm manages projects—not force management to work around the software.
We help evaluate and improve project structure, time and cost capture, billing workflows, month-end processes, management reporting, QBO or IES configuration where appropriate, cleanup, migrations, and system handoffs.
The result should be a financial operating system that gives both project leaders and ownership better information without creating unnecessary administrative burden.
Ready for Better Visibility Into Project Performance?
When project accounting, overhead, utilization, billing, earned value, reporting, or financial workflows are not giving management the information it needs, the problem is rarely just one report.
Stirn & Associates helps architecture, engineering, and project-based firms strengthen the financial systems behind better project and business decisions.
Not sure where the problems start? Begin with a Business Review.