The simple formula for financial management is: “The hours that you get paid for have to generate enough revenue to cover ALL the firm’s expenses plus a profit.”
On the Admin page is a new link to tools to help you incorporate this model into your bookkeeping.
More help is coming in the weeks ahead.
You get the Best Results by daily logging of time and money transactions. This requires just 5-15 min/day.
There are two reasons that you get the Best Results this way.
1) GIGO - Garbage In, Garbage Out. Old time entries do not reflect reality.
2) More importantly, you can have GREAT info at your fingertips all the time.
It is priceless to know you are going over budget or drifting off target as early as possible so you can correct the problem.
TIME - take a few minutes to set up your personal timesheet to make daily time entries a breeze. Then twice a day, before lunch and before ending work, make your time entries.
MONEY - as you receive payments or bills, enter them while you make time entries once a day (if any). Include a PDF or picture of the bill if you want to have it handy when you pay bills later. Leaving expenses marked ‘No’ for ‘Paid?’ puts them in the Payables table for easy access.
One of the benefits of architectural bookkeeping is getting instant feedback from your data.
The table of Project-Phase Budgets on the Projects page always shows you how many hours and dollars have been logged. If you have set a design budget, you know what percent complete the Project-Phase deliverables should be.
Similarly, by opening the Project Financial Status Reports from the Bookkeeping page, you can see in one line per project how income and expenses look. Click the Details link at the end of the line to dig deeper into the time and money attributed to the Project.
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