The verdict in three sentences
An off-the-shelf PSA (Professional Services Automation) at 25 to 60 EUR excl. VAT per user per month handles time entry and time-and-materials billing well for most consulting firms. Custom software at 35,000 to 65,000 EUR excl. VAT is justified when your engagements mix fixed fee, time and materials and HR retainers with rules PSAs handle poorly, or when the tool must plug into your CRM and payroll. Either way, the target is the same: bring unbilled hours from 12 % to under 5 % and steer a utilization rate of 70 to 75 %.
Why 12 % of hours disappear
In an HR consulting firm (recruitment, HR audits, restructuring support, manager training), lost hours come from three sources: weekly timesheets filled from memory on Friday evening, fixed-fee overruns never billed through a change order, and ancillary work (extra interviews, a board debrief) forgotten at invoicing time.
| Leak | Typical share of lost hours | Software fix |
|---|---|---|
| Late or memory-based entry | 4 to 5 % | Daily mobile entry, 5 pm reminder |
| Unflagged fixed-fee overrun | 3 to 4 % | Alert at 80 % of engagement budget |
| Unbilled ancillary work | 2 to 3 % | Billable lines tagged at entry |
| Time booked to an internal code by mistake | 1 to 2 % | Engagement list filtered per consultant |
| Pro forma invoices approved late | 15 to 30 day lag | One-click partner approval flow |
Market PSA or custom: 2026 comparison
| Criterion | Market PSA | Custom by Kolonell |
|---|---|---|
| Entry cost | 2,000 to 10,000 EUR excl. VAT setup | 35,000 to 65,000 EUR excl. VAT |
| Recurring cost for 40 users | 1,000 to 2,400 EUR excl. VAT/month | Hosting and maintenance 600 to 1,000 EUR excl. VAT/month |
| 5-year cost | 62,000 to 154,000 EUR excl. VAT | 71,000 to 125,000 EUR excl. VAT |
| Mobile entry | Yes | Yes, with your engagement codes |
| Mixed fixed fee, T&M, retainer | Fixed fee and T&M, retainers often weak | Any combination |
| Utilization and forecast | Yes, standard | Yes, with your staffing rules |
| CRM, payroll, accounting integrations | Catalog connectors | On your exact tools |
| Time to go live | 4 to 8 weeks | 3 to 5 months |
For 40 users, both options converge over 5 years. A market PSA remains the right choice if your engagements are standard. Custom software wins as headcount grows, because its cost does not scale with users, and when your billing model does not fit the boxes.
Metrics to track every week
| Metric | 2026 HR consulting target | Alert threshold |
|---|---|---|
| Billable utilization | 70 to 75 % | Below 60 % over 4 weeks |
| Unbilled hours | Under 5 % | Over 8 % |
| Entry rate by next day | Over 90 % | Below 75 % |
| Fixed-fee consumption | Under 100 % at delivery | 80 % reached before 60 % of schedule |
| Time from entry to invoice | Under 10 days | Over 25 days |
| Realized average day rate | 850 to 1,200 EUR excl. VAT | 15 % below list rate |
Mini case study
Nathalie, a partner at an HR consulting firm in Nantes, leads 40 consultants who bill on average 1,300 hours a year each, at a realized hourly rate of 130 EUR excl. VAT. With 12 % of hours unbilled, the firm lets 40 x 1,300 x 12 % = 6,240 hours slip, about 811,000 EUR of theoretical value.
Not all those hours can be billed. If the software recovers just a quarter (1,560 hours), the gain reaches 202,800 EUR a year. With a custom project at 55,000 EUR excl. VAT and 9,600 EUR of annual maintenance, payback comes in under 4 months. The same reasoning with a PSA at 45 EUR per user (21,600 EUR a year) is also highly profitable: the decision hinges on functional fit, not price.
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FAQ
Will consultants really log time every day?
With mobile entry in under 60 seconds and a 5 pm reminder, firms usually reach over 90 % next-day entry within 6 weeks. Showing each consultant their own utilization motivates more than an email reminder.
How do we handle a fixed fee that overruns?
The software alerts the partner as soon as 80 % of the hours budget is consumed. They can then offer the client a change order before the engagement ends, instead of absorbing a 20 to 30 % overrun.
Can we bill monthly HR retainers?
Yes, custom software combines fixed fee, T&M and retainers (for example 1,500 EUR excl. VAT a month for outsourced HR support) with included hours and billing for overages.
Which integrations should we plan?
The most common: CRM to pull signed engagements, accounting for invoices, payroll for hour-based variables. Each connector costs 2,500 to 6,000 EUR excl. VAT depending on the API.
How long does it take to start?
A market PSA runs in 4 to 8 weeks. Custom software takes 3 to 5 months, including 4 weeks of scoping and 3 weeks of acceptance on a month of real timesheets.
Let's scope your project. Tell us your headcount, billing models and current tools, and we will compare PSA and custom options, then price a scope between 35,000 and 65,000 EUR excl. VAT with a 3 to 5 month timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
