FP&A Case Study: Pakistan IT Services | Axial Consulting

An IT services company in Pakistan needed a firmer grip on its numbers, from volatile monthly revenue to overdue receivables and unclear margins. We provided end-to-end FP&A advisory covering financial reporting, cash management, segment profitability and services pricing.

Location
Pakistan
Sector
IT Services

The Brief

The Client asked us to provide end-to-end FP&A advisory across financial reporting, receivables and cash management, segment profitability and services pricing.

That meant monthly and year-to-date reporting, a receivables collection framework, a cash and liquidity model, segment-level employee classification and a pricing calculator, all supporting long-term partner growth and dividend decisions.

The Obstacle

Milestone-based revenue across several service lines caused sharp monthly swings that were hard to explain against budget without detailed variance analysis. With cash reserves tightening, there was also no structured way to decide which overdue clients to chase first.

Employees and costs weren't mapped to segments, which obscured which service lines were profitable, and there was no consistent method for margin-based pricing.

FP&A advisory engagement for an IT services company in Pakistan

Our Approach

We built a cash flow forecast that separates controllable cash from pass-through funds, with reserve and runway analysis to show how long the business could operate on what it actually holds.

We then linked headcount cost to deployment and revenue activity through a workforce utilization framework, and mapped people and costs to segments to reveal where each service line makes or loses money.

What We Delivered

We supported the Client in strengthening FP&A across cash management, workforce utilization, segment profitability and pricing.

  • We developed a cash flow forecast to improve visibility over liquidity and working capital.
  • We built a workforce utilization framework to assess employee deployment and segment profitability.
  • We developed a pricing calculator to support margin-based quoting and more disciplined pricing decisions.
Excerpt from the FP&A analysis for an IT services company
Excerpt from the FP&A dashboard

Our Impact

The Client gained strategic advice on pricing and financial planning that sharpened its value proposition.

The engagement set the Client on a path to segment profitability and repeatable pricing, giving it a firmer basis for future dividend decisions.

Financial planning output from the IT services engagement
Excerpt from the engagement

Explore how our FP&A advisory turns volatile numbers into clear decisions.

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