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IT services and infrastructure

IT services company financial model, built free.

A three-statement Excel model for an IT services and managed services, built from your own figures and checked to balance.

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  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Provides consulting and projects billed on time and materials or fixed price, recurring managed-services contracts, and resale of hardware, software and cloud.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
IT services company sample model.xlsx
The Summary sheet of the sample IT services company model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for an IT services company.

  1. How it earns revenue3 formulas
    Fee revenue and realisation · All practice groups
    Total weightPartnersDirectorsManagersSeniorsGraduates
    Fee revenue and realisation · All practice groups
    Fee revenueChargeable time at standard ratesTime written off (below standard rates)
    Fee revenue and realisation · All practice groups
    Chargeable time at standard ratesChargeable hoursfrom chargeable hours and utilisationBlended standard charge-out rate
  2. What drives its costs3 formulas
    Fee-earner headcount and staff cost · All practice groups
    Fee-earner salaries and on-costsAnnual salary bill at current ratesOn-costs (superannuation, payroll tax, leave)share of the year
    Fee-earner headcount and staff cost · All practice groups
    Directors and senior managersPartners and principalsDirectors per partner
    Fee-earner headcount and staff cost · All practice groups
    ManagersPartners and principalsManagers per partner
  3. What it invests in3 formulas
    Corporate fixed assets
    Capital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
    Corporate fixed assets
    DepreciationDepreciation of the opening asset baseDepreciation of new capex
    Corporate fixed assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Work in progress (unbilled) · All practice groups
    Work in progress (unbilled fees)Fee revenuefrom fee revenue and realisationWIP daysDays in period (on a 365-day year)
    Work in progress (unbilled) · All practice groups
    Fee debtors (billed and unpaid)Fee revenuefrom fee revenue and realisationDebtor daysDays in period (on a 365-day year)
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
What it covers

22 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • LeasesLease register
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Case selectionStackable stress toggles
  • Fee-earner headcount and staff costLeverage pyramid
  • Chargeable hours and utilisationUtilisation by grade
  • Fee revenue and realisationHours × rate × realisation
  • Work in progress (unbilled)Lock-up target split into WIP and debtors
  • Contract life cycleProbability-weighted renewal
  • Contract revenueFTE or hourly rate pricing
  • Service delivery costLabour build (FTE × wage × on-costs)
  • Mobilisation, transition and contract costsExpensed as incurred
Key numbers

The numbers it tracks.

  1. 01utilisation
  2. 02average daily rate
  3. 03recurring revenue share
  4. 04gross margin by stream
  5. 05revenue per employee
  6. 06EBITDA margin
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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Looking for an IT services company financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.