Accounting Built for Service Businesses

The Accounting app for Professional Services supports multiple revenue recognition methods per engagement type. For fixed-price projects, the system calculates percentage of completion based on hours delivered versus estimated hours, or milestones achieved versus planned milestones. For T&M engagements, revenue is recognized as time entries are approved and billed. Retainer revenue is recognized monthly based on the contract terms. All of this happens automatically based on rules you configure once per engagement type.

Project profitability analysis covers more than revenue minus direct costs. Yukti allocates overhead to projects based on configurable allocation methods, which gives you fully-loaded profitability per engagement. You can see whether a project covered its direct labor costs and also its share of office rent, software licenses, management overhead, and other indirect costs. The analysis shows which types of engagements make money and which look profitable until overhead is included.

Timesheet-to-billing-to-collection tracking follows every hour from when a consultant logs it through invoicing, client payment, and cash receipt. The system shows work in progress that has not been billed, invoices outstanding, and aging receivables per client and project manager. This pipeline view of unbilled and uncollected revenue helps you avoid taking months to get paid for finished work.

Expense management for consultants and project teams captures receipts, applies project codes, handles multi-currency reimbursements, and integrates with vendor invoices. Travel expenses, software subscriptions, subcontractor fees, and other project costs flow through the correct accounts and allocate to the right projects automatically. There is no month-end matching of expense reports to projects, and project cost tracking stays current.