Business Central for UK Professional Services Firms: Projects, Time and Billing
The UK has one of the world’s strongest professional services sectors: consultancies, engineering and architecture practices, IT services firms, agencies and many more. Their economics are simple to describe and hard to manage: sell time and expertise, deliver projects on budget and bill quickly. Many firms still run this with a mix of time-tracking tools, spreadsheets and an accounting package. Business Central brings projects, time, expenses and billing together in one system.
Key takeaways for leaders
- Profitability in professional services depends on utilisation, project margin and the speed from work done to cash received.
- Business Central Projects covers budgets, resources, time sheets, work in progress and billing in one place.
- Fixed-price, time-and-materials and milestone billing can all be handled in the same system.
- The Projects Power BI app shows project profitability, and the new Expense Agent links employee expenses to projects.
- One system means less re-keying, faster invoicing and more reliable month-end figures.
The KPIs That Matter
- Utilisation: the share of available hours that are billable.
- Project margin: actual revenue and cost against budget, by project and by client.
- Work in progress (WIP): work done but not yet invoiced, which is a key balance sheet item.
- Lock-up: the time from work done to cash in the bank (WIP days plus debtor days).
- Forecast: pipeline and resource capacity for the coming months.
How Business Central Supports Professional Services
- Projects: plan budgets by task, with resources, items and expenses, and track actual costs and revenue as they happen.
- Resources and capacity: manage people and their availability, with cost and sales prices per resource.
- Time sheets: staff record time against projects and tasks, and managers approve it before it becomes billable.
- WIP calculation: calculate and post work in progress for accurate month-end figures.
- Billing: create invoices from approved time and expenses, or from fixed-price and milestone schedules.
- Recurring fees: subscription billing handles retainers and managed service contracts.
Expenses and AI
Consultants travel, and their expenses must end up on the right project and often on the client’s invoice. The Expense Agent, available in preview since spring 2026, lets employees submit receipts from their phone or Outlook. The agent creates the expense lines, links them to the project and marks them as billable where appropriate. Copilot also helps with everyday tasks such as bank reconciliation and analysis.
Reporting for Partners and Directors
The Projects Power BI app for Business Central analyses project profitability, budget versus actual and WIP. Combined with financial dashboards, partners and directors can see which clients and services really make money, and act before a project overruns. Our reporting and analytics team can tailor these reports to your firm.
Frequently Asked Questions
Is Business Central suitable for professional services firms?
Yes. Business Central Projects covers budgets, resources, time sheets, WIP and billing, and it combines them with full financial management in one system.
Can Business Central handle fixed-price and time-and-materials projects?
Yes. Projects can be invoiced from approved time and expenses, or from fixed-price and milestone billing plans.
Can employees record time in Business Central?
Yes. Employees record time on time sheets against projects and tasks, and managers approve it. Users who only enter time can often use a lower-cost Team Members licence.
For professional services firms, every hour counts. Business Central connects time, projects and billing so you can bill faster and see where you really make money.
Would you like to see Business Central with a professional services scenario? Contact us or book a call with one of our experts.
Related reading
