You quote a number in week one. Hours get logged, scope creeps, a freelancer gets pulled in, and the honest answer to "did that project make money" arrives months later, at month-end, from a spreadsheet somebody had to reconstruct. By then the margin is already gone and the next project is being quoted the same way.
The tooling makes it worse. Ops software for service businesses is a pile of point tools that do not share context: the PM tool does not know what was quoted, the invoicing app does not know who worked the hours, and every one of them has to be re-briefed on the same client. The people who could fix the numbers are too busy re-typing them between systems.
We felt both of those in our own agency. This product started as the internal system we built to stop it.