Revenue
€1M
annual, ex. VAT
Avg ACC Invoice
€2,500
market avg: €3,600-6,000
IT Actual vs Contract
7x
€67K actual / €9.5K contracted
Growth Target
+50%
€1M → €1.5M in 12 months
Key Diagnostic Findings
Three critical areas identified during initial analysis — each represents a concrete growth lever.
| 1 | IT spend 7x over contract | €67K actual vs €9.5K contracted. Single vendor dependency, ~300 unspecified hourly charges/year. Renegotiation + hybrid model = €17-29K savings immediately. |
| 2 | Payroll automation opportunity | PAY generates 42% of all invoices but only 16% of revenue — efficiency ratio 0.4x. Automating this service triples capacity without new hires, unlocking +€80K/year from the same team. |
| 3 | New Service: Management Reporting | Clients ask "how is my business doing?" — the firm can't answer. By combining freed capacity from automation (Finding 2) with dashboard tools, a new paid service is created: monthly management reports, KPI tracking, financial insights. This product doesn't exist today — it emerges from the engagement. Projected: €140K/year. |
Growth Phases: Current → Phase 1 → Phase 2
Average ticket grows through bundling and new services — not through price increases on existing ones.
| Revenue | Rev / Client | How | |
|---|---|---|---|
| Current State | €1M | €10K | Single-service clients dominate. ACC invoice €2,500 — below market avg (€3,600-6,000). |
| Phase 1: Optimization | €1.2M | €12K | Same prices. PAY automation, SUB conversions, TAX bundling. More services per client — not higher unit prices. |
| Phase 2: Growth | €1.5M | €15K | New reporting service + partnerships add a revenue layer. Revenue per client grows because the basket grows. |
| Operating Margin | <1% | ~10% → ~22% | Revenue +50%, but profit ×30. IT savings + automation cut costs while revenue grows. Phase 2 adds high-margin reporting and partnerships on the optimized base. |
| LU Market Average | 1,293 firms | €3.6-6K invoice | +5.9%/yr growth. Digital platforms from €99/mo compressing margins on base services. |
Key: margin per unit ↓ × units per client ↑ = revenue per client ↑. This is the standard response to margin compression — depth over price.
Market Position
Where the firm stands today and where it's heading — based on industry trends
5 Industry Trends Shaping This Market
T1Technology Became Accessible
AI and automation tools now cost €0-200/mo. 46% of accountants use AI daily¹. Firms investing in AI gain +7 weeks capacity per employee per year².
→ Who doesn't automate — loses competitiveness
T2Margin Compression
Digital platforms offer packages from €99/mo. Cloud accounting enables DIY. Basic bookkeeping is becoming a commodity. Margins shrinking industry-wide.
→ Can't grow by adding clients to same services
T3Compliance → Reporting & Insights
79% of accountants expect reporting & insights revenue growth³. High margins in helping clients earn and save, not just file returns. CFO-as-a-Service — rare in LU.
→ First mover captures the niche
T4Outsourcing & Partnerships
80% of firms outsource part of their work⁴. 83% say it gives competitive edge. Automate internally → act as subcontractor for larger players.
→ Internal efficiency enables external scale
T5Internal Tech Expertise
Tech changes every 3-6 months. New AI tools, APIs, integrations. Someone must monitor, test, implement, train. Strategy, not IT support.
→ Without this role, firms fall behind silently
¹² Intuit QuickBooks Accountant Technology Survey 2025, n=700 · ³ Accountancy Age 2025 · ⁴ CPA.com AI in Accounting Report 2025
Competitive Landscape
| Tier | Players | Pricing | Position |
|---|---|---|---|
| Big4 | PwC, EY, Deloitte, KPMG | €200-500/h | Indirect threat |
| Mid-Tier | BDO, RSM, Mazars, GT | €120-250/h | Medium |
| Tech-Enabled Services | Niche players combining tech + accounting expertise | €100-180/h | ◀ Target |
| Traditional Fiduciaire | Relationship-based, manual processes | €80-120/h | ◀ Now |
| Digital-First | Online platforms | from €99/mo | Disruptive |
| Foreign Outsourcers | Offshore providers | €30-80/h | Growing |
Strategy: Move from "Traditional" to "Tech-enabled services partner" — a position between Mid-Tier quality and Digital-First efficiency. Personal expertise + automation. Trends 1, 3, 5 create demand for this type of player.
Price Benchmarks (LU Market)
| Service | Budget | Mid-Market | Premium |
|---|---|---|---|
| Monthly bookkeeping | €150/mo | €250-350/mo | €450+/mo |
| Annual accounts | €1,500 | €2,500-4,000 | €5,000+ |
| Payroll per slip | €20 | €25-35 | €40+ |
| Company incorporation | €1,200 | €1,500-2,500 | €3,000+ |
| Mgmt reporting | €200-500/mo — rarely offered by fiduciaires | ||
Insight: 1,293 providers serving 15-20K SMEs = avg 12-15 clients per firm. Most fiduciaires are tiny. The top 10% serve 200+ clients — the difference is technology and process automation.
Clients
100
across 4 segments
Total Revenue
€1M
avg €10K/client
Avg ACC Invoice
€2,500
core service: 64% of revenue
Note: Accounts receivable at 13% of revenue (norm 5-8%). €125K outstanding, €22K written off. Cleanup and automated reminders are part of the Roadmap (step 7).
Service Portfolio & Revenue Bridge
How each service line performs today and where growth comes from
Current State
100 clients, €1M. ACC = 64% of revenue. 44 micro-clients = 10% of income. IT costs 7× over contract.
→
Phase 1: Optimization
Same 100 clients, better economics. IT savings, PAY automation (3× capacity), B→A conversion (5 clients), SUB model rollout.
→
Phase 2: Growth
New revenue streams on optimized base. ~115 clients. Management reporting service, fund/law partnerships, organic inbound growth.
Service Portfolio by Phase
| Service | CURRENT | PHASE 1: OPTIMIZATION | PHASE 2: GROWTH | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Rev. | Cl. | €/yr | Rev. | Cl. | €/yr | Rev. | Cl. | €/yr | |
| ACC — Accounting | €640K | 80 | €8,000 | €680K | 82 | €8,293 | €680K | 82 | €8,293 |
| PAY — Payroll | €160K | 35 | €4,571 | €240K | 45 | €5,333 | €240K | 45 | €5,333 |
| LEG — Legal | €120K | 30 | €4,000 | €130K | 32 | €4,063 | €130K | 32 | €4,063 |
| TAX — Fiscal | €32K | 12 | €2,667 | €38K | 14 | €2,714 | €38K | 14 | €2,714 |
| SUB — Subscription | €48K | 5 | €9,600 | €120K | 10 | €12,000 | €120K | 10 | €12,000 |
| Mgmt Reporting (new) | — | — | — | — | — | — | €140K | 12 | €11,667 |
| Partnerships (new) | — | — | — | — | — | — | €152K | 18 | €8,444 |
| TOTAL | €1M | 100 | €10,000 | €1.2M +€208K | 100 | €12,080 | €1.5M +€292K | ~115 | ~€13,043 |
Avg check = service revenue / service clients. Total = total revenue / unique clients (one client may use multiple services). PAY check grows through automation (3× volume capacity), SUB through conversion to all-inclusive. No price increases.
Mgmt Reporting —
Management reporting and analytics sold as an add-on to existing accounting clients, and as a standalone service to new clients. The firm already has the data — it just isn't packaged as a product. Dashboards, KPIs, monthly insights: high margin, recurring revenue.
Partnerships —
Finding client hubs — funds, law firms, tech companies — that need accounting services for their portfolio. Post-automation, the firm has spare capacity to act as a reliable subcontractor. One partner = 10-20 clients at once.
Revenue Composition: Current → Phase 1 → Phase 2
Current — €1M€10,000 /cl.
Phase 1: Optimization — €1.2M€12,080 /cl.
Phase 2: Growth — €1.5M~€13,043 /cl.
ACC share drops from 64% to 45%. Phase 1 grows existing services. Phase 2 adds two new revenue streams — 19% diversification.
Capacity: Team ~6 FTE. Current revenue/FTE: €167K (market benchmark: €200-250K). After automation: projected €250K/FTE — no new hires needed for Phase 1-2.
How It Works
Growth sources, quarterly roadmap, engagement model, and scope
Five Growth Sources
| # | Source | Type | Timeline | Impact |
|---|---|---|---|---|
| ① | IT Cost Optimization | Cost Savings | 1-3 mo | Renegotiate vendor contracts, build hybrid IT model. Savings fund the engagement. |
| ② | Payslip Automation | Revenue ↑ | 2-6 mo | Triple PAY capacity through automation. Same team, more output. |
| ③ | Management Reporting | New Product | 3-9 mo | Freed capacity → new reporting product. Client demand exists but isn't served today. |
| ④ | Partnerships (Funds, Law, Tech) | New Revenue | 6-12 mo | Subcontracting for larger players. Pipeline-based, yr-1 conversion 60-80%. |
| ⑤ | Organic (SUB, TAX bundling) | Revenue ↑ | 3-12 mo | Convert top clients to subscription, bundle TAX with ACC. Cross-sell existing base. |
Sequence matters: ①② build automation and efficiency first. Then ③④ launch new products and partnerships — you can't be a reliable subcontractor without efficient processes.
⚠ Assumptions requiring validation:
• Partnership pipeline (€152K) — depends on partner acquisition and deal flow. Conservative case: 40% conversion = €91K. Even at half target, engagement ROI remains positive.
• Reporting service (€140K) — requires 10-15 paying clients at €1K/mo avg. Pilot with 3-5 clients in Phase 1 will validate demand before scaling.
• SUB conversion (€72K) — assumes 5 top clients agree to switch. Each requires individual negotiation; actual conversion may be 3-4 clients.
• Partnership pipeline (€152K) — depends on partner acquisition and deal flow. Conservative case: 40% conversion = €91K. Even at half target, engagement ROI remains positive.
• Reporting service (€140K) — requires 10-15 paying clients at €1K/mo avg. Pilot with 3-5 clients in Phase 1 will validate demand before scaling.
• SUB conversion (€72K) — assumes 5 top clients agree to switch. Each requires individual negotiation; actual conversion may be 3-4 clients.
Roadmap
Engagement
Engagement Model
The consultant's compensation is fully aligned with results, structured in two parts:
1Fixed Monthly Fee
Covered entirely by savings from IT optimization and process automation. The owner's net cost is zero — the fee pays for itself from recovered inefficiencies.
2Performance Percentage
A share of income from new services, new clients, and partnerships. This revenue doesn't exist today — it only appears through the engagement.
The exact structure and percentage are discussed individually based on scope and agreed targets. Typical terms are shaped in the first meeting based on firm size, current revenue, and agreed growth targets. The model ensures the engagement pays for itself from recovered inefficiencies, and the performance component applies only to genuinely new revenue.
Typical engagement economics
In this case study, Phase 1 optimization delivered 2.5-3.5× the consultant cost in verified savings and revenue growth — before any new products launched. The fixed fee was fully covered by IT savings alone.
Three Roles in Every Engagement
Owner — strategy & expertise
Strategic decisions, pricing, key client relationships. Quality control and final approval on all changes. Deep domain expertise and industry knowledge that no consultant replaces.
Consultant — execution & growth
Operations: IT audit, automation, process redesign. Product: reporting service, dashboards, client portal. BizDev: partnerships, marketing, upsell strategy. All actions — with owner approval.
Team — operations & delivery
Direct client contact and service delivery. After automation — freed capacity goes to service quality and new products. Team members grow into new roles as the firm evolves.
Based on a real engagement. This case study is built from an actual project. The three-role model ensures the engagement creates lasting capability — not dependency on the consultant.