Chapter 7: Revenue Is Not Enough – The Income Statement as a Management Tool

Personal Introduction

From 2008 to 2014, I worked closely with Prakash Parab in the waste management sector at Dulsco: first as a customer, later as a colleague in the role of Commercial Director, and subsequently as a senior-level freelance consultant. The article series presented here, however, covers the staffing business.

Brief Summary of the Original

In Chapter 7, Prakash Parab explains how managers can use a staffing company's profit and loss statement to manage the business.

His starting point is a transparent results structure: from revenue to direct provision costs and gross margin, and then to overheads, necessary risk provisions, and operating result. Industry-specific costs must not be overlooked or counted twice.

Parab places particular emphasis on the quality of revenue. High revenue means little if payments are received late or invoices are regularly disputed. Therefore, the results calculation and the aging of receivables should be considered together.

Averages are not enough for him either: margins should be broken down by customer and business unit. Other key points are the proper period allocation of services and a monthly comparison with the budget and the previous month. Significant deviations require explanations and concrete measures.

Jan Wilhelm's Own Practical Assessment

For service companies, this allows for a practical management routine: discuss the monthly results development, outstanding receivables, and operational causes together.

An illustrative example: An order grows, while the cost of providing cover and non-billable hours increase at the same time. The additional revenue can then mask weaker profitability. An analysis by order helps to pinpoint the cause and establish responsibilities.

ELB Services can assist in organizing such analyses and coordination processes. Specific accounting and tax questions should be discussed with authorized professionals.

Original article by Prakash Parab:
The Staffing P&L: Reading Your Numbers Like an Owner⁠

Website and series overview:
Prakash Parab – Insights: Staffing Industry Guides⁠

Independent editorial summary and recommendation by Jan Wilhelm. No authorized translation or joint publication. Original read on October 18, 2026.