B2B Services
IT services, staffing, and wholesalers share one challenge: you bill on terms but costs hit now. We track receivables and margins to manage the gap.
The Cash Flow Gap
B2B businesses look profitable on paper. Revenue appears healthy. Margins seem reasonable. Then you check the bank account and wonder where the money went. The answer is usually sitting in accounts receivable. Commercial clients operate on terms. Net 30 becomes net 45. Net 45 stretches to net 60. Meanwhile, payroll happens every Friday and vendors expect payment on schedule.
This timing gap is the central challenge for IT services, staffing agencies, wholesalers, and commercial suppliers across MetroWest and Greater Boston. The work is done, the invoice is sent, but the cash won’t arrive for weeks. Managing this gap without running short on operating cash is what separates businesses that grow steadily from those that constantly scramble.
Who This Covers
Who This Covers
IT managed services and project-based tech firms. Staffing and temp agencies. Wholesalers and distributors. Commercial suppliers and B2B service providers. Any business selling to other businesses on payment terms.
What Makes It Hard
What Makes It Hard
Costs are immediate but revenue collection lags 30 to 60 days or more. Multiple contract types create different billing cycles. A handful of clients often represent the majority of revenue. Thin margins require precise tracking to avoid working harder for less money.
What We Handle
Receivables tracking is foundational. You need to know what’s outstanding, how old it is, and who needs follow-up. We age your AR weekly and build systematic collection routines so invoices don’t slip past 60 days without attention. For staffing agencies, we track the gap between what you bill clients and what you pay workers, including the burden from taxes and workers comp that eats into that spread. For IT services, we separate project revenue from retainer income so you can see which clients and which work types actually generate profit.
Wholesalers need tight inventory tracking. Cost of goods sold directly determines margin, and if inventory counts drift from reality, your financials become unreliable. We reconcile inventory regularly and track landed costs including freight so your margin calculations reflect what you actually paid, not just the invoice price. Cash flow forecasting ties everything together, showing when receivables will likely convert to cash and whether you have enough runway to cover the next few payroll cycles.
Receivables and Collections
Receivables and Collections
Weekly aging reports with systematic follow-up processes. Client payment history tracking to identify slow payers early. You see exactly what’s outstanding and have a routine to collect before accounts age past tolerance.
Margin Tracking by Type
Margin Tracking by Type
Bill rate versus pay rate analysis for staffing including full burden costs. Project and retainer profitability for IT services. Cost of goods with landed costs for wholesalers. True margin by client and contract type, not just overall averages that hide problems.
What Goes Wrong
Receivables age without systematic attention. A $15,000 invoice slips to 45 days, then 60, then 90. Nobody followed up because nobody was tracking it closely. The client might pay eventually, but in the meantime you’re scrambling to cover payroll or putting expenses on credit. Staffing agencies watch their bill-to-pay spreads shrink when burden costs increase but billing rates don’t adjust. That 20% margin becomes 12% once you account for the tax and workers comp increases that hit mid-year, and you don’t realize it until the quarterly numbers come in flat.
Wholesalers buy inventory based on projected demand but track sales by revenue, not by unit or category. Revenue looks healthy so the business feels successful, but slow-moving inventory ties up cash and eventually gets discounted or written off. IT services mix project work with retainer clients and can’t tell which is more profitable because time tracking is loose and expenses aren’t allocated to specific engagements. The team stays busy but the bank account doesn’t grow.
Receivables Slipping Unnoticed
Receivables Slipping Unnoticed
No systematic aging review means accounts drift past 60 days before anyone takes action. Following up at 90 days is often too late to collect easily. Paper profits look fine while actual cash position deteriorates week by week.
Margins Eroding Slowly
Margins Eroding Slowly
Burden costs increase and vendor prices creep up, but billing rates stay flat. Margin compression happens gradually enough that you don’t notice until you’re working more hours for less take-home. By then the pattern is entrenched.
What Changes
Receivables get aged weekly and followed up systematically. You know exactly what’s outstanding and how old each invoice is. Collection becomes a routine process instead of a crisis response when cash gets tight. Cash flow forecasting shows expected collection timing so you can plan around gaps instead of being surprised by them. When you see a potential shortfall three weeks out, you have time to accelerate collections, delay discretionary spending, or arrange short-term financing before it becomes urgent.
Margins become visible by client, contract type, and service line. Staffing agencies see exact spread after full burden. Wholesalers see margin by product category accounting for landed costs and carrying time. IT services see which clients generate real profit and which consume resources disproportionately. Pricing decisions get informed by actual data instead of gut feel. Growth happens deliberately, adding capacity when the numbers clearly support it rather than taking on work and hoping it works out.
Predictable Cash Position
Predictable Cash Position
Weekly AR aging and rolling cash flow forecasts. You know what’s coming in and roughly when. Gaps get identified early while there’s still time to manage them without stress or emergency measures.
Margin Visibility for Decisions
Margin Visibility for Decisions
True profitability by client, contract, and service line. Pricing and proposal decisions get informed by actual cost data. Growth gets built on work you know is profitable, not just work that keeps people busy.
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