In a service firm, people are the main cost and clients are the main risk. Naarvin shows profit by client and project even when the ERP leaves salaries untagged, brings in the payroll register with end-of-service entitlements, recognises contract revenue against what was billed, keeps a register of supplier contracts with renewal and notice alerts, and keeps collections moving. Budgets by team and hiring plans sit in the same model.
What makes finance in a service firm different?
- Salaries are most of the cost, and the ERP books them in one line, not by client or project.
- Retainers and milestones are invoiced at different times from when the work is done.
- A few large clients pay late and decide the month's cash.
- End-of-service liabilities grow every month and are worked out once a year.
- Software, rent and service contracts renew by themselves unless someone gives notice in time.
How does a service firm run finance with Naarvin?
- Bring in payrollImport the payroll register from a file: each employee's pay by element, with end-of-service entitlement and years of service. Bank account numbers are not stored in readable form.
- Spread people costTag payroll and other costs to clients, projects or teams, accept suggested tags, and spread shared costs by your allocation rules.
- Recognise contract revenueRetainers and milestone contracts are recognised as the work is delivered and set against what was billed, showing deferred or unbilled revenue.
- Collect on timeReminders in Arabic or English, promises tracked, and receipts matched to invoices.
- Watch the contractsSupplier, service and lease contracts are listed with renewal and notice terms, with an alert before each notice deadline.
- Plan the teamBudgets by team and hiring plans sit in the same model as revenue, so the effect of a new hire on margin and cash is visible.
Which numbers matter most?
| Number | What it tells you | Where it comes from |
|---|---|---|
| Client and project margin | Which work actually makes money | Revenue and tagged costs, with shared costs allocated |
| Payroll to revenue | Whether the team is sized for the work | Payroll register and income statement |
| Unbilled revenue | Work done but not yet invoiced | Contract positions against invoices |
| Days sales outstanding | How fast clients pay | Receivables and revenue |
| End-of-service liability | What is owed to staff on leaving | Payroll register entitlements |
What do you need to start?
- Your accounting system connected.
- A payroll register export from your payroll or HR system.
- Your clients, projects or teams, and your rules for shared costs.
- Your main contracts with their renewal and notice terms.
Who is this for?
Consultancies, agencies, engineering and design offices, and other firms that sell people's time on retainers or projects. A one-person practice may get what it needs from its accounting system.
Questions people ask
Does Naarvin run payroll?
No. Payroll runs in your payroll or HR system. Naarvin imports the register to report on people cost and end-of-service entitlements.
Are salaries visible to everyone in finance?
No. Access is set by role, and payroll figures are shown only to people allowed to see them.
Can we see margin per client if salaries are booked in one line?
Yes. Payroll and other costs can be tagged to clients or projects in Naarvin, and shared costs are spread by your rules, without changing your ERP.
Does it remind us before a contract renews?
Yes. Each contract's notice deadline is worked out from its terms, and an alert appears before it passes.