Wouldn’t it be great if you had a better idea of what your forward income looks like?
Here’s how to achieve a future picture using MyCake or other book keeping systems:
- take each existing project and allocate the fees you’re charging (according to the stage payments you’ve agreed with the client) into appropriate invoices
- date these invoices appropriately i.e. if you’ve agreed you’ll bill a third half way through the project give it a date half way through the project
- then re-order your list of invoices so that they are in date order and you’ll get a summary of what your future cash flow ought to look like (!)
The goal is to end up with a realistic view of your future income by month. The Monthly Income report in MyCake gives a visual illustration for those of us who hate numbers:
Whilst a book-keeping system isn’t a crystal ball to help you work out which projects you’ll win and which you won’t (a CRM system such as Tactile would help with this though) you can use it to look at the patterns in income for contracted projects where budgets have been signed off.