Are your clients asking, “What should we cut?” Here’s how to forecast for profit clarity.

As markets tighten and capital access shrinks, the conversation has shifted. Clients aren’t asking “How do I grow 30%?” they’re asking:

“How much do I need to cut to break even?”

“What’s the least revenue I need to stay profitable?”

“How do I protect my margins from getting eaten alive?”

‍

In today’s climate, profitability isn’t a performance metric, it’s a survival metric.

Our global survey of 200+ advisors revealed a clear shift in mindset: clients are no longer fixated on top-line growth, they’re urgently focused on sustainable profit.

Here’s what we heard from the advisors we surveyed:

“Clients want to understand exactly where they stand and what they can cut.”

“They’re asking for detailed cost structures and breakeven by output or gross profit.”

“Forecasting scenarios and margin improvement are top of mind.”

This isn’t just about slashing expenses, it’s about understanding the relationship between revenue, cost, and profit at a granular level.

How advisors are helping

Leading advisors are stepping into a more strategic role, helping clients:

• Build cost structure models (fixed vs variable)
  ‍
• Run breakeven analysis to define minimum viable performance
  ‍
• Develop forecasting scenarios for margin protection and recovery
  ‍
• Compare profitability year-over-year or by business unit
  ‍
• This shift is clear: clients don’t just want a report. They want a roadmap.
  ‍

Using Fathom to analyse profitability & breakeven

‍

Here’s how to walk clients through margin conversations using Fathom:

1. Identify the break-even point

Using Fathom’s Profitability Analysis tool, advisors can instantly calculate a business's break-even revenue.

→ Example: The break-even is $391,000

→ If actual revenue is $429,000, the margin of safety is just $38,000, a small buffer

2. Reverse-engineer profit targets

Want to achieve a specific profit (e.g. $60,000)? Fathom helps you reverse-calculate the required revenue.

→ In this case, the business would need $500,000 in revenue to reach that goal

→ Set these targets directly in Fathom’s forecast settings for ongoing tracking

3. Reclassify costs for accurate forecasts

Make sure your chart of accounts correctly classifies costs as either fixed or variable.

This ensures breakeven analysis reflects true margins, especially under pressure scenarios like rising COGS or new tariffs.

For more insights, check out our help centre articles on profitability analysis and chart of accounts.  

Clients aren’t chasing growth, they’re chasing survival.

Find out how other advisors are helping clients rethink margins and protect profit.

Read the full insights

Try for yourself  

Ready to deliver insights that make a difference? Start your free 14-day trial of Fathom today.