#1 CONSTRAINT: OpEx Leverage (Payroll 45% of revenue vs 40% target)
Why It Matters:
Payroll growing in line with revenue instead of leveraging. Need to grow client base without adding staff OR automate ops tasks to reduce headcount need. $20k/mo gap = $240k/year margin loss.
Who Needs Unblocking: James + Ops team
Payroll growing in line with revenue instead of leveraging. Need to grow client base without adding staff OR automate ops tasks to reduce headcount need. $20k/mo gap = $240k/year margin loss.
Who Needs Unblocking: James + Ops team
MRR
$402k
Net Profit Margin
21.9%
Cash Runway
8.2 mo
Operating Cash Flow
$88k/mo
P&L Summary (Budget vs Actual) — Last Quarter
| Line Item | Budget | Actual | Variance | Variance % | Status |
|---|---|---|---|---|---|
| Revenue | $1,260k | $1,206k | -$54k | -4.3% | 🔴 Below |
| Gross Profit | $882k | $846k | -$36k | -4.1% | 🔴 Below |
| Operating Expenses | $588k | $602k | +$14k | +2.4% | 🔴 Over |
| EBITDA | $294k | $244k | -$50k | -17.0% | 🔴 Below |
| Net Profit | $315k | $264k | -$51k | -16.2% | 🔴 Below |
Profitability Ratios
Gross Margin
70.1%
(target 70%)
🟢
Net Margin
21.9%
(target 25%)
🔴
EBITDA Margin
24.9%
(target 30%)
🟡
Efficiency Ratios
Revenue per employee
$24k/mo
(target $25k)
🟡
Cost per client
$3,340
(target $3,000)
🟡
OpEx ratio
70%
(target 65%)
🔴
#1 LIMITING FACTOR: Manual Invoice Follow-up (18d avg payment vs 10d target)
Reach
100%
94 clients total
Impact
High
Frees $48k cash flow
Confidence
High
Automation proven
Effort
Low
1 week implementation
Days to Payment
18d
Invoice Automation Rate
68%
Collections Required
$48k
Bruntwork Audit Time
3.5d
Month-End Close Time
5d
Payment Behavior Distribution
On-time (0-7d)
78 clients
83%
Late (8-30d)
12 clients
13%
Overdue (31-60d)
3 clients
3%
Seriously overdue (61d+)
1 client
1%
Collections Efficiency
Avg collection attempts per overdue invoice
3.2
Success rate
68%
Need 85%+
Time spent on collections
15hr/week
High
Target: <5hr/week
Process Bottlenecks & Repair Opportunities
| Process | Current | Target | Gap | Issue | Suggested Fix | RICE |
|---|---|---|---|---|---|---|
| Invoice → Payment | 18d | 10d | +8d | Manual follow-up | Auto-invoice + reminders | 280 |
| Bruntwork Audit | 3.5d | 1d | +2.5d | Manual hours check | API integration + auto-match | 180 |
| Month-End Close | 5d | 2d | +3d | Manual reconciliation | Xero automation + checklists | 220 |
| Credit Note Processing | 4d | 1d | +3d | Approval delays | Approval workflow + auto-apply | 120 |
TOP NEEDLE-MOVING ACTIONS (Role-Based)
👔 Manager View (Finance Lead)
1.
Leverage
Implement auto-invoice + payment reminder workflow (1 week)
→ RICE 280. Fixes #1 limiting factor. Frees $48k cash flow + 0.6mo runway.
2.
Leverage
Build Bruntwork audit automation (API integration, 3 days)
→ RICE 180. Cuts audit time from 3.5d → 1d. Saves 10hr/invoice.
3.
Process
Complete March month-end close (target: 5 Apr)
→ Critical path. EBITDA variance analysis needed for board review.
4.
Escalation
Review Newark Plumbing debt ($16.8k, suspended) — write-off decision
→ Requires James approval. 180d overdue. Legal escalation or write-off?
🎧 Finance Ops View (Jec/Mel)
1.
Reactive
Chase 12 overdue invoices ($28k)
→ Priority: ES4U Electrical (18d overdue, $3.8k), TradeUp Contractors (12d, $2.9k).
2.
Reactive
Audit Bruntwork March invoice ($118k)
→ Due 5 Apr. Manual hours validation required. Est 8hr work.
3.
Reactive
Process 2 pending credit notes ($2k)
→ ProForm Electrical ($1.2k) + DigiType Australia ($800). Need approval.
4.
Process
Reconcile week 4 bank statements
→ Required for month-end close. Match 48 transactions.
🤖 Pending Agent Approvals
Agent-generated work requiring human review and sign-off
✅ Ready for Approval
🤖 Agent
Invoice Reminder Agent
Auto-drafted payment reminders for 12 overdue invoices
Status:
✅ Complete
→ 12 email drafts ready
Human Action Required
Review + approve send
Owner: Jec
Due: Today 4pm
Priority: High
Review Time: 15 minutes
🤖 Agent
Bruntwork Audit Agent
Hours + rate validation for March invoice
Status:
✅ Complete
→ 2 discrepancies flagged ($420 variance)
Human Action Required
Review discrepancies + approve payment
Owner: Mel
Due: 5 Apr
Priority: High
Review Time: 20 minutes
⏳ In Progress
🤖 Agent
Cash Flow Forecasting Agent
Build April cash flow projection
Status:
⏳ Running
→ 60% complete
Human Action Required
Review forecast when complete
Owner: Jec
Due: 31 Mar
Priority: Medium
Progress: 60%
📊 Agent Performance This Week
Invoice Reminder Agent (Jec)
🟢 Healthy
Tasks: 48 payment reminders sent
Response rate: 42% (vs 28% manual baseline)
Time saved: 6 hours
Status: 🟢 Healthy
Bruntwork Audit Agent (Mel)
🟢 Healthy
Tasks: 4 invoices audited
Discrepancies found: 2 ($420 total)
Time saved: 8 hours
Status: 🟢 Healthy
Cash Flow Forecasting Agent
🟡 New
Forecasts generated: 1 (April)
Accuracy: TBD (first run)
Time saved: 4 hours
Status: 🟡 New
| Priority | Task | Type | Owner | Due | Status |
|---|