For services teams at technology companies, SIs and consultancies
You did the work.Make sure you billed it.
Every approved hour, signed change order and rebillable cost that misses the invoice comes off your realization rate. xfactrs checks every handoff between your PSA and billing, read-only, and hands you the dollar amount and the cause.
$20.4M a year protected at one xfactrs client
Earned to collected
Where earned revenue drops out before it reaches the bank
Revenue falls away at every handoff. The earlier it drops, the less likely anyone sees it. Ray checks every step.
| Step | Value | Lost at this step | Why |
|---|---|---|---|
| Earned | $100.0M | None | Work delivered, at the rates the client signed |
| Approved | $98.4M | $1.6M | Time logged late, to the wrong code, or never logged |
| Invoiced | $96.6M | $1.8M | Rates, change orders, milestones and expenses that miss the invoice |
| Collected | $95.5M | $1.1M | Disputes, credits and write-offs |
of every $100M earned never reaches the bank. In this example, three quarters of it is gone before the invoice goes out, where no collections process will ever find it.
Illustrative firm with $100M of earned work. The total matches the 4.5% industry benchmark. How it splits across the steps varies by firm, and the 15-Day Challenge shows where yours drops.
What is one point of realization worth to you?
Industry benchmarks put revenue leakage at professional services firms at around 4.5% of revenue. Every hour of it that never reaches an invoice comes straight off your realization rate. Put in your numbers.
Estimates from your inputs. The 4.5% leakage figure reflects industry benchmarks for professional services firms. Your real number comes from your own data.
The cost of this work is already on your books. Billing it adds revenue with almost no new cost, so it goes nearly straight to profit.
Find where yours is leakingMeet Ray
The agent that reads every SOW, timesheet and invoice
Ray is the AI agent inside xfactrs. It connects read-only to your CRM, PSA, time entry, billing and ERP, and runs 500+ control points on every transaction, every day.
Compares
What the client signed, what your team delivered and what you invoiced.
Explains
Each gap comes with the dollar amount, the root cause and the records behind it.
Routes
Sends it to the person who can fix it, often a delivery lead, and keeps the evidence for audit.
Ray never changes your data. It doesn't post entries or send invoices. It flags the problem, and your team decides what to do.
Catch it upstream, before it turns into leakage
By the time a gap shows up on the invoice, the overrun has happened and the go-live date may have moved. Ray watches the signals that come first, then checks every handoff to the invoice.
Forecast-vs-actuals drift
The services forecast says one number. Approved hours and billing say another. The gap shows up at quarter-end as a miss nobody saw coming.
Ray checksEach project's forecast against approved hours and billed revenue, every week, flagging projects that drift apart.
Puts at riskForecastRevenue timing
Overallocation
Your best people booked at 130% across three projects. Work slips, quality drops and the go-live date moves.
Ray checksStaffed hours in the PSA against what each SOW funds and what each person can deliver, flagging people booked past capacity.
Puts at riskGo-live dateMargin
Bench-to-pipeline gaps
Consultants on the bench while deals with attached services sit in the pipeline. Or a deal closes and nobody is free to start.
Ray checksServices attached to CRM opportunities against open capacity in the PSA, so staffing gaps show before the deal closes.
Puts at riskUtilizationStart date
Fixed-price EAC creep
Estimate at completion creeps up a few hours a week. By the time anyone looks, the fixed fee is gone.
Ray checksEstimate at completion against the fixed fee in the SOW, flagging projects heading past it while a change order is still possible.
Puts at riskMarginGo-live date
This is about more than margin. Overallocation and scope creep push go-live dates. When go-live slips, so does the customer's time to value, and for services sold with a product, so does the renewal.
Approved time, never invoiced
Late approvals miss the billing run. Hours land on the wrong project code.
Ray checksApproved hours against invoiced hours, by project and period
Rate cards that drift
A 2026 contract, still billed at 2025 rates. A senior role billed at an analyst rate.
Ray checksBilled rate against contract rate, role and annual uplift
Change orders and milestones
Signed or accepted by the client, and never added to the billing plan.
Ray checksChange order and milestone sign-off against the billing plan
Retainers and true-ups
Monthly minimums not enforced. Overage hours nobody trued up.
Ray checksHours used against retainer terms, every month
Pass-through costs
Rebillable subcontractor and travel costs that stayed in AP.
Ray checksRebillable costs in AP against client invoices
Write-downs and credits
Each one small and reasonable. Together they erase margin, with no approval trail.
Ray checksEvery credit and write-down against its approval
For the Controller and CFO
Leakage costs margin. These three cost you an audit finding.
The bigger risk is a balance in the ledger that nobody can explain. Ray checks the records behind each of these every day.
- 01
Unbilled WIP that ages
Revenue recognized ahead of billing builds a contract asset. Once it ages past your billing terms, it turns into a reserve, a write-off or a question from your auditor.
Ray, every dayTies every unbilled balance to the hours and milestones behind it, and flags any that age past the SOW's billing terms.
- 02
Milestone revenue without evidence
Revenue booked on a milestone the client never signed off. Or signed off and never invoiced. Both show up in revenue testing.
Ray, every dayMatches milestone status in the PSA to client acceptance and to the invoice, and flags a gap in either direction.
- 03
Credits with no approval trail
Write-downs and goodwill credits approved over email, or not at all. Auditors sample them. Your team has to explain each one.
Ray, every dayTests every credit note and write-down against your approval policy and keeps an evidence record for each.
For services and delivery leaders
Delivery owns the work. These three decide whether it pays.
Most billing gaps start on a project, long before finance sees them. Ray shows delivery leads the gaps on their own projects, with the fix attached.
- 01
Change order discipline
Scope grows on a call and the team keeps working. The change order is signed weeks later, or never, and the extra hours get written off.
Ray, every dayFlags hours logged to work outside the signed scope, and change orders signed but never added to the billing plan.
- 02
Practice margin
A senior consultant staffed on an analyst-rate role. A rate card that missed its annual uplift. Write-downs that keep landing on the same few projects.
Ray, every dayCompares billed rates to contracted rates for every role and practice, and shows where write-downs concentrate by project and project manager.
- 03
Client disputes
An invoice with the wrong rate, a missing PO or hours the client never approved. The client pushes back, payment slips and the renewal conversation starts badly.
Ray, every dayChecks each invoice against the SOW terms, the PO and client-approved hours before it goes out.
Pick your firm. See where it leaks.
Implementation, onboarding and premium services sold on top of a product deal. Often discounted or bundled to help the product deal close.
Pre-sales scoping that hands off poorly
The SOW was written to close the product deal. Delivery plans something different, and the gap becomes free work.
What Ray checksScoped hours and deliverables in the SOW against the delivery plan in the PSA at kickoff.
Ad hoc change orders, never documented
The customer asks, the team says yes and nobody writes it down. The work happens. The invoice never does.
What Ray checksHours logged to work outside the signed scope with no change order behind them.
Free customer success effort
Non-billable customer success or relationship hours that are really unpaid delivery, often on the biggest accounts.
What Ray checksNon-billable hours by account, flagging accounts where they climb past the threshold you set.
Partner and subcontractor margin
Partners bill you for hours or rates you never passed on to the customer, and the margin on the deal disappears.
What Ray checksPartner and subcontractor invoices against the hours and rates billed to the customer for the same work.
Fixed-fee implementation, then time and materials, then managed services, often on one client
Change orders between phases. Managed service counts that grow while the invoice stays flat.
Change order to billing plan, milestone to invoice, contracted units against delivered units
Per device, per user or per ticket, with SLAs and annual escalators
Device counts not updated. SLA credits with no incident behind them. CPI uplifts missed.
Provisioned count against billed count, SLA credit against ticket evidence, escalator dates
Time and materials against rate cards, often with not-to-exceed caps
Rate drift. Work past a cap with no change order. Write-downs at invoice review.
Rate by role against contract, cap burn against change orders, write-down approvals
Per FTE, per transaction or per outcome, with volume bands
Old FTE counts. Transactions billed in the wrong band. Gainshare never calculated.
Headcount against billed FTEs, volume against band, gainshare terms against results
Progress billing, retainage and reimbursables
Percent complete billed behind delivery. Retainage never released and invoiced.
Percent complete against billed to date, retainage release dates, reimbursable markup
Two missed invoices were enough to make the case.
Read the eDiscovery story“The results are very actionable. I can go to project managers and say we've noticed the gap in the billing. What are we doing now?”
What happens in the 15-Day Challenge
The 15 days start once your systems are connected. xfactrs sits on top of your PSA, billing and ERP and replaces none of them.
You provide
- Read-only access, or file exports, for your PSA or time entry, billing system and ERP
- A sample of active SOWs and their change orders
- One finance lead for a kickoff call and the day 15 readout
We connect
- Native connectors for Salesforce, NetSuite, Oracle, Zuora and Chargebee
- PSA, time entry and project accounting systems through read-only API access or exports
- No write access. Nothing in your systems changes.
You get on day 15
- One confirmed leak from your own data
- The dollar amount and the root cause
- The records behind it: the SOW clause, the timesheet, the invoice
- Who should fix it, and how
What it is not: a total leakage estimate for your firm. One confirmed leak, traced to its cause, tells you more than any estimate.
- Partner rebates and incentive claims
- Staffed but not billing
- Fixed-fee burn alerts at 80%
- Outcome and AI-credit pricing
- Software plus services bundles
- Client invoice audits
Find your first leak in 15 days.
Connect read-only. Fifteen days later you get one real gap from your own data, the dollar amount and the reason it happened.
We're a services firm, not a subscription business. Does this apply?
Yes. Retainers, managed services, support contracts and multi-year SOWs are recurring revenue billed against contract terms every month. The checks compare what the client agreed to, what you delivered and what you billed.
Our PSA already reports leakage. Why add xfactrs?
A PSA report gives you the leakage rate after the period closes. xfactrs tells you which hours, invoice or change order caused it, and why, while the invoice can still be fixed.
Does xfactrs replace our PSA, ERP or auditors?
No. xfactrs is a read-only layer on top of the systems you already run. For your auditors, it adds an evidence record behind every exception. It doesn't replace their work.
We're a systems integrator. Can we partner with you too?
Yes. Many SIs use xfactrs on their own revenue and bring it to their quote-to-cash and finance transformation clients through referral, advisory or reseller models. See the partner program.