Skip to content
Inari Finance

An example of the work we discuss together

Growth is up.
Can the business afford its next hire?

Read a sample monthly report, explore the insights and follow an owner’s question through an example response from Inari. This is the kind of decision your analysis and monthly meeting help you work through.

Synthetic company · September 2026 report

Inari Finance
Synthetic example

Monthly report

September 2026 at a glance

How the month went, what to decide and what moved your profit, written for the director.

September 2026Figures are on the accruals basis.Amounts in pounds sterling

This is a synthetic example: invented figures for an imaginary business, shown so you can see the format. It contains no client information. A client’s report is built from that client’s own records and approved by their consultant before it is sent.

How the month went

September 2026: busy, but less profitable.

Sales

£412,600

▲ £23,700 (6.1%) vs Aug 26

▲ £51,400 (14.2%) vs Sep 25

Gross margin

41.2%

▼ 3.6 % points vs Aug 26

▼ 2.3 % points vs Sep 25

Operating profit

£38,400

▼ £13,700 (26.3%) vs Aug 26

▼ £3,300 (7.9%) vs Sep 25

Cash at month end

£286,300

▼ £15,500 (5.1%) vs Aug 26

▲ £41,400 (16.9%) vs Sep 25

September's growth did not reach the bottom line. Sales rose by £23,700 to £412,600, while operating profit fell by £13,700 to £38,400.

Most of the fall came from delivery costs. More of the work was done by contractors, whose day rates are higher than your own team's, so gross margin dropped from 44.8% to 41.2%.

Cash is healthy at £286,300, but it dipped because clients are paying more slowly.

Decisions this month

Three things to decide, and their financial impact.

Agree a day-rate cap with Northgate Associates before extending their contract

We recommend capping Northgate's day rate for the October extension, or moving the Brightwater project back to your own team from November.

Next step: Ask Northgate for their August and September invoices before agreeing the extension.

What it's worth

A cap at your current internal cost would add about £5,000 of gross profit a month.

Likely: Northgate's September invoices not yet seen

Evidence: appendix, points 4 and 5.

Invoice the approved time not yet billed

We recommend billing the approved time that has not yet been invoiced this week.

Next step: The finance lead raises the invoices from the matched timesheet list.

What it's worth

236 approved hours from July to September are on no client invoice; at agreed rates they total £18,400.

Firm: full timesheet and invoice records

Evidence: appendix, points 6 and 7.

Hold the third planned hire until gross margin recovers

We recommend holding the third planned hire for one month, until the contractor rate is settled.

What it's worth

The planned salary and on-costs are £4,900 a month.

Likely: depends on the first decision

Evidence: appendix, points 8 and 9.

What moved profit

Operating profit, August 2026 to September 2026

Every bar comes from a calculated figure, and the bars add up exactly from one month’s profit to the next. Solid bars are explained; hatched bars are partly explained; a dashed outline is not yet explained.

£0£20k£40k£60k£80k£52,100Augustprofit+£9,200FenwickGroup+£14,500Othercustomers−£14,900NorthgateAssociatespartlyexplained−£13,100Othersuppliers−£6,200Salaries−£1,800Software−£1,400All otheroverheadsnot yetexplained£38,400SeptemberprofitSalesDelivery costsRunning costs
  1. August profit£52,100
  2. Fenwick GroupSales+£9,200
  3. Other customersSales+£14,500
  4. Northgate AssociatesDelivery costs · partly explained−£14,900
  5. Other suppliersDelivery costs−£13,100
  6. SalariesRunning costs−£6,200
  7. SoftwareRunning costs−£1,800
  8. All other overheads (no supplier detail imported)Running costs · not yet explained−£1,400
  9. September profit£38,400

Added to profit Reduced profit Partly explained Not yet explained

Show the figures in a table
Operating profit, August 2026 to September 2026
LineGroupEffect on profitExplanation
August profit£52,100
Fenwick GroupSales+£9,200Explained
Other customersSales+£14,500Explained
Northgate AssociatesDelivery costs−£14,900Partly explained
Other suppliersDelivery costs−£13,100Explained
SalariesRunning costs−£6,200Explained
SoftwareRunning costs−£1,800Explained
All other overheads (no supplier detail imported)Running costs−£1,400Not yet explained
September profit£38,400

Explained

Sales added £23,700: Fenwick Group's new phase £9,200 and other customers £14,500, mostly from more billable days.

Partly explained

Northgate Associates cost £14,900 more. They billed 41 more days than in August. We have not yet seen their September invoices.

Explained

Other delivery costs rose £13,100, in line with the extra billable hours.

Explained

Two new salaries added £6,200 and software £1,800.

Not yet explained

Other overheads rose £1,400 with no single account explaining it; we will check the remaining September bills.

Key measures

Where the business stands against its targets.

Gross margin

41.2%

Target 45.0%

Agreed with you

Off target

Operating margin

9.3%

Target 12.0%

Agreed with you

Off target

Utilisation

71.4%

Target 75.0%

Proposed by Inari

Off target

Debtor days

52 days

Target 45 days

Proposed by Inari

Off target

Months of costs in cash

2.2 months

Target 2.0 months

Set by you

On target

Sales per consultant

£15,900

No target set

No target set

Cash outlook: the next 13 weeks

Cash dips in late November, then recovers.

£240k£260k£280k£300k5 Oct19 Oct2 Nov16 Nov30 Nov14 Dec28 DecLowest £241,000£281,400£291,000

Swipe sideways to see the whole chart.

Expected cash in the bank at the end of each week (week starting)
Show the figures in a table
Cash outlook
Week startingExpected cash
5 Oct£281,400
12 Oct£276,900
19 Oct£284,200
26 Oct£279,000
2 Nov£272,500
9 Nov£268,100
16 Nov£262,000
23 Nov£241,000
30 Nov£255,800
7 Dec£263,400
14 Dec£276,200
21 Dec£283,100
28 Dec£291,000

Lowest point: £241,000 in the week starting 23 Nov.

On the invoices and bills we can see, cash is lowest, at £241,000, in late November.

Based on the dated client invoices and supplier bills in our cash schedule.

Payroll and tax payments are not all in the schedule yet, so treat this as a guide, not a forecast.

Opportunities worth discussing in our call

Where more could be made, and what happened since last month.

Bring debtor days back to target

Bringing debtor days back to target would release about £94,000 of cash. Three clients account for most of the slowdown.

Firm: full sales ledger

Review prices for clients on older rates

Each 5.0% increase for clients still on older rates would add about £3,100 a month.

Likely: rate cards not yet seen

Follow-through from last month

StatusWhat we agreed, and what happened
Done

Agreed: chase the two overdue Fenwick invoices.

The two overdue Fenwick invoices were paid in full in September.
In progress

Agreed: cancel the software subscriptions nobody uses.

Four of eleven unused subscriptions cancelled, saving £640 a month.
Not startedNo update recorded yet.

Questions for our meeting

  1. Is the Northgate work on Brightwater expected to continue past December?

    It decides whether a rate cap is worth negotiating now. Likely to know: Operations lead.

  2. Are any of the unbilled hours on fixed-fee work?

    Fixed-fee hours cannot be billed separately. Likely to know: Finance lead.

Evidence and limits

What this report is built on, and what it could not check.

Data used this month

SourcePeriodStatus
Profit and loss (Xero)Sep 2025 to Sep 2026Complete
Bank feedSeptember 2026Complete
Supplier billsSeptember 2026Partial: complete to 25 Sep
Contractor invoices—Not received

What we could not check yet

  • Payment timing: The relevant monthly records, from the bookkeeper.
  • Unprofitable work: Time and invoices by project for the last quarter, from the finance lead.
  • Utilisation: The relevant monthly records, from the bookkeeper.
  • Subscriptions: The relevant monthly records, from the bookkeeper.
  • Borrowing costs: The relevant monthly records, from the bookkeeper.
  • Customer concentration: The relevant monthly records, from the bookkeeper.
  • Seasonality: The relevant monthly records, from the bookkeeper.

Limits to this report

  • Contractor invoices were not available, so the Northgate rate change is not confirmed.

How to read this report

We calculate every figure and chart in this report from your accounting records, and each one is checked independently before we approve the report.

Figures are rounded to the nearest £; totals use exact values.

Percentages are shown to one decimal place. A change in a percentage, such as gross margin, is given in % points.

Confidence: Firm means we checked the full records. Likely means the evidence points one way but a record is still missing. Open means we cannot say yet.

The evidence behind every point

How the month went

1 September's growth did not reach the bottom line. Sales rose by £23,700 to £412,600, while operating profit fell by £13,700 to £38,400.

  • Calculated by Inari: £23,700, £412,600, £13,700 and £38,400 (calculation r-sum-1).
  • Source: Profit and loss (Xero), September 2026.

2 Most of the fall came from delivery costs. More of the work was done by contractors, whose day rates are higher than your own team's, so gross margin dropped from 44.8% to 41.2%.

  • Calculated by Inari: 44.8% and 41.2% (calculation r-sum-2).
  • Source: Profit and loss (Xero), September 2026.

3 Cash is healthy at £286,300, but it dipped because clients are paying more slowly.

  • Calculated by Inari: £286,300 (calculation r-sum-3).
  • Source: Profit and loss (Xero), September 2026.

Decisions this month

4 We recommend capping Northgate's day rate for the October extension, or moving the Brightwater project back to your own team from November.

Likely: Northgate's September invoices not yet seen

  • Source: Profit and loss (Xero), September 2026.

5 A cap at your current internal cost would add about £5,000 of gross profit a month.

  • Calculated by Inari: £5,000 (calculation r-dec-1-impact).
  • Source: Profit and loss (Xero), September 2026.

6 We recommend billing the approved time that has not yet been invoiced this week.

Firm: full timesheet and invoice records

  • Source: Profit and loss (Xero), September 2026.

7 236 approved hours from July to September are on no client invoice; at agreed rates they total £18,400.

  • Calculated by Inari: 236 and £18,400 (calculation r-dec-2-impact).
  • Source: Profit and loss (Xero), September 2026.

8 We recommend holding the third planned hire for one month, until the contractor rate is settled.

Likely: depends on the first decision

  • Source: Profit and loss (Xero), September 2026.

9 The planned salary and on-costs are £4,900 a month.

  • Calculated by Inari: £4,900 (calculation r-dec-3-impact).
  • Source: Profit and loss (Xero), September 2026.

What moved profit

10 Sales added £23,700: Fenwick Group's new phase £9,200 and other customers £14,500, mostly from more billable days.

  • Calculated by Inari: £23,700, £9,200 and £14,500 (calculation r-drv-sales).
  • Source: Profit and loss (Xero), September 2026.

11 Northgate Associates cost £14,900 more. They billed 41 more days than in August. We have not yet seen their September invoices.

  • Calculated by Inari: £14,900 and 41 (calculation r-drv-northgate).
  • Source: Profit and loss (Xero), September 2026.

12 Other delivery costs rose £13,100, in line with the extra billable hours.

  • Calculated by Inari: £13,100 (calculation r-drv-suppliers).
  • Source: Profit and loss (Xero), September 2026.

13 Two new salaries added £6,200 and software £1,800.

  • Calculated by Inari: £6,200 and £1,800 (calculation r-drv-overheads).
  • Source: Profit and loss (Xero), September 2026.

14 Other overheads rose £1,400 with no single account explaining it; we will check the remaining September bills.

Open: September supplier bills complete only to late September

  • Calculated by Inari: £1,400 (calculation r-drv-other).
  • Source: Profit and loss (Xero), September 2026.

Cash outlook

15 On the invoices and bills we can see, cash is lowest, at £241,000, in late November.

  • Calculated by Inari: £241,000 (calculation r-cash-1).
  • Source: Profit and loss (Xero), September 2026.

Opportunities

16 Bringing debtor days back to target would release about £94,000 of cash. Three clients account for most of the slowdown.

  • Calculated by Inari: £94,000 (calculation r-opp-1).
  • Source: Profit and loss (Xero), September 2026.

17 Each 5.0% increase for clients still on older rates would add about £3,100 a month.

  • Calculated by Inari: 5.0% and £3,100 (calculation r-opp-2).
  • Source: Profit and loss (Xero), September 2026.

Follow-through from last month

18 The two overdue Fenwick invoices were paid in full in September.

  • Source: Profit and loss (Xero), September 2026.

19 Four of eleven unused subscriptions cancelled, saving £640 a month.

  • Calculated by Inari: £640 (calculation r-ft-2).
  • Source: Profit and loss (Xero), September 2026.

Supporting analysis

20 Northgate's entries rose from £31,200 in August to £46,100 in September.

  • Calculated by Inari: £31,200 and £46,100 (calculation r-app-1).
  • Source: Profit and loss (Xero), September 2026.
  • Condition: Invoices not yet seen.
Inari Finance · September 2026Synthetic example · No client data or approval record

02 / The insights

The finding. The implication. The next step.

Three examples from the September report. Each connects a financial signal to a practical decision and the evidence still needed.

Profitability
£13,700less operating profit than in August

More sales, less profit: delivery costs rose faster.

Sales rose £23,700, but gross margin fell from 44.8% to 41.2% as more of the work went to contractors, whose day rates are higher than your own team’s. Northgate Associates alone cost £14,900 more, after billing 41 more days than in August.

Next step

Ask Northgate for their August and September invoices, then agree a day-rate cap before extending their contract.

Evidence & what to confirm

Source: Profit and loss (Xero), September 2026. Northgate’s entries rose from £31,200 in August to £46,100 in September.

Contractor invoices have not been received, so the Northgate rate change is not confirmed. In the profit bridge this part is shown as partly explained.

Billing
£18,400of approved time on no client invoice

Work has been done, but not billed.

236 approved hours from July to September are on no client invoice. At agreed rates they total £18,400.

Next step

Raise the invoices from the matched timesheet list this week.

Evidence & what to confirm

Source: Full timesheet and invoice records. We are confident of this one: the records are complete.

Hours worked on fixed-fee projects cannot be billed separately, so the team needs to confirm which hours are affected before invoices go out.

Cash & collections
£94,000of cash released if debtor days return to target

Clients are paying more slowly.

Debtor days are 52 against a target of 45. Bringing them back to target would release about £94,000 of cash. Three clients account for most of the slowdown.

Next step

Start with those three clients and agree a payment date for each overdue invoice.

Evidence & what to confirm

Source: Full sales ledger. The two overdue Fenwick invoices were paid in full in September.

Collecting a debt turns a receivable into cash; it does not raise operating profit. Payroll and tax payments are not all in the cash schedule yet, so the outlook is a guide, not a forecast.

03 / A question, answered

A real decision deserves a considered answer.

A worked conversation with an Inari financial consultant, using the synthetic September report above. See the reasoning, the options and what you would work through together in your monthly meeting.

The owner asksSynthetic company · Example question
“September was our biggest sales month, but profit fell. Can we still go ahead with the third hire we planned, and what should we do first?”
Inari FinanceYour financial consultant · Example response

Hold the hire for a month, and settle the contractor rate first.

Cash is not what holds this back. You have £286,300, and on the invoices and bills we can see, cash is lowest at £241,000 in late November. Payroll and tax payments are not all in that schedule yet, so we treat it as a guide, not a forecast.

Margin is the issue. Gross margin fell to 41.2% against a 45.0% target, and operating margin is 9.3% against 12.0%. The third hire adds £4,900 a month in salary and on-costs while the biggest cost pressure, Northgate’s day rate, is still unsettled.

A day-rate cap at your current internal cost would add about £5,000 of gross profit a month, roughly what the planned hire would cost (£4,900 a month in salary and on-costs).

Three ways to approach the decision

The monthly effect of each option, from the synthetic September report
OptionMonthly effect
Go ahead with the third hire nowAdds £4,900 of salary and on-costs, before the contractor rate is settled.
Cap Northgate’s day rate for the October extensionAbout £5,000 more gross profit, if capped at your current internal cost. Northgate’s September invoices have not been seen yet.
Move the Brightwater project back to your own team from NovemberNot yet sized. We need Northgate’s invoices first.

What would change our view

If Northgate agrees a cap, or Brightwater moves back to your own team, margin starts to recover. Once the contractor rate is settled, we would bring the hire back to the table at the next meeting.

Our next steps together

  1. Ask Northgate for their August and September invoices.
  2. Raise invoices for the 236 approved hours (£18,400) that no client has been billed for.
  3. Confirm whether the Northgate work on Brightwater continues past December. It decides whether a rate cap is worth negotiating now.
Our view in this example

Hold the third planned hire for one month, until the contractor rate is settled. Cash is healthy at £286,300; the pressure is on margin. Likely, because it depends on the first decision.

“What if Northgate won’t agree a cap?”

Then the Brightwater project can move back to your own team from November, which takes their day rate out of the delivery cost. We would size that saving once we have seen their August and September invoices. Until then, the rate change is not confirmed.

“Would getting paid faster change the answer?”

It would help cash: bringing debtor days back from 52 to the 45-day target would release about £94,000. It would not change the monthly margin, so it does not settle the hire on its own.

Synthetic worked response. A client recommendation would depend on the supporting records, confirmed assumptions and consultant approval.

04 / Explore the evidence

Follow the figures. Test the assumptions.

Step through the signal, the profit bridge, the cash outlook and the options behind the discussion, and adjust a scenario yourself. It uses the same synthetic company as the report above.

Open the interactive analysis

Synthetic company · September 2026

“September was our biggest sales month, but profit fell. Can we still go ahead with the third hire we planned, and what should we do first?”

Performance overview

Your month at a glance

Sep 26 · GBP · accruals
Sales£412,600↑ £23,700 vs Aug
Gross margin41.2%↓ 3.6 percentage points vs Aug
Cash at month end£286,300↓ £15,500 vs Aug

Sales by month

Select a bar to inspect the month
The latest month needs a closer look.

Sales are £23,700 (6.1%) against August, but operating profit is £13,700 (26.3%). Follow the profit and cash tabs to see what needs attention.

1 of 5
Sales, gross margin and cash for the synthetic company, September 2025 to September 2026 · CSV

Your support between meetings

A place to return to the detail.

Your portal supports the relationship with your adviser. Explore the figures and assumptions behind your discussion using this synthetic workspace, which shows the same company as the report above.

Explore the client workspace
Example businessSynthetic company · Interactive example
Performance overview

Your month at a glance

Sep 26 · GBP · accruals
Sales£412,600↑ £23,700 vs Aug
Gross margin41.2%↓ 3.6 percentage points vs Aug
Cash at month end£286,300↓ £15,500 vs Aug

Sales by month

Select a bar to inspect the month
The latest month needs a closer look.

Sales are £23,700 (6.1%) against August, but operating profit is £13,700 (26.3%). Follow the profit and cash tabs to see what needs attention.

Overview · Explore the tabs above. Sample figures come from the synthetic September report above; the scenario is simple arithmetic on those figures.

Regular advice. A personal relationship.

Need financial guidance
without a full time finance hire?

Talk to Inari about your business, your growth plans and the decisions you want help with. We’ll agree the level of support that fits.

Talk to Inari