If you haven’t connected the dots between resource management and profitability, now’s the time. Once seen as a back-office function, it is now a critical investment area for accountancy firms.

Why? With rising competition and growing private equity investment, firms are under greater pressure to enhance operational performance and protect profitability—driving a sharper focus on resource management. Despite this, many firms struggle to demonstrate its financial impact in clear, quantifiable terms. This isn’t just an operational challenge—it’s a missed revenue opportunity.

A recent study by Dayshape in collaboration with the RMI explored whether firms can establish a connection between resource management and financial performance - and, crucially, what is preventing them from doing so.

The findings highlight four key barriers:

1. Resource management isn’t fully aligned with financial goals
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‍A key barrier is the disconnect between resource management and financial objectives. While most resource management teams support broader strategic priorities, fewer than half of firms say their resourcing practices align with revenue goals. Further, only 26% of firms reported that their resourcing function includes financial planning and reporting.

There is a strong intent to link resource management with profitability, but in many firms, this remains more aspiration than reality. Until resource management is embedded in financial planning, firms will struggle to close the gap.

3. A reactive approach to profitability tracking
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Many firms still take a reactive approach to monitoring project profitability, which limits their ability to manage revenue risks in real time. While 37% of firms proactively track project profitability, too many wait until the later stages of a project—or even after completion—to assess project profitability.

By the time issues surface, it’s often too late to take corrective action or have timely conversations with clients. This reactive approach not only results in missed opportunities to optimise project margins, redeploy underutilised resources, or prevent revenue leakage but can also erode client satisfaction. To bridge the gap, firms should adopt real-time financial monitoring and proactive decision-making—ensuring they can address risks early, pivot plans, and manage expectations.

‍4. Systems and process inefficiencies prevent strategic decision-making    

Even when firms recognise the importance of resource management, their ability to act strategically is often hindered by outdated software systems and fragmented processes. Many firms still rely on multiple, siloed tools that fail to provide a unified and accurate view of resource capacity, project demand, and profitability.

As a result, resource managers struggle to identify key risks—such as capacity gaps, budget overruns, or skill shortages—until it’s too late to address them efficiently. The research highlights that fewer than half of firms can perform these tasks without significant manual effort, creating an operational bottleneck that slows down decision-making and impacts profitability.

These issues aren’t quick fixes, but firms that invest in better processes and data integration are best placed to bridge the gap. Replacing outdated, disconnected tools with advanced resource management software can deliver the visibility, standardisation, and insights that enable more strategic, profit-focused decisions.

The bottom line: investment in resource management will pay off
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Bridging the gap between resource management and financial performance isn’t without its challenges—but the opportunity is significant. For CFOs and business leaders, the message is clear: resource management isn’t just about operations—it’s about the bottom line

Firms should focus on:

• Embedding resource management into financial planning
  
• Improving visibility into resourcing decisions and their financial impact
• Adopting real-time tracking of project and profitability metrics
• Investing in integrated, purpose-built resource management software

Firms that act now will improve margins, increase efficiency, and position themselves for long-term success. With rising pressure, resource management is becoming impossible to ignore.

Ready to build your revenue engine?

‍Register for Dayshape’s April workshop with Christine Robinson for Dayshape’s April workshop with Christine Robinson (former resource management leader at Baker Tilly US and EY). Attendance is free, and you’ll walk away with practical guidance for building a compelling business case for strategic resource management.