We use an Excel spread sheet to track all incomes and all expenses each month of the year. In the top half of the sheet, we list all projects in the first column and list potential incomes by month in twelve columns. Each income source gets a line. At the lower half of the sheet, we list all expenses and potential expenses projected for each month - payroll, consultants, printing, insurance and taxes. The sum of all income in that month is compared with the sum of all expenses, you get your P/L of that month. The P/L of that month is carried over to the following month. They are constructed with actual invoices and estimates. We monitor and update that every month. This spreadsheet help us to manage our cash flow in rolling twelve months ahead. It is especially helpful in deciding when to pay whom according to the projected incomes. It is also a tool for us to identify and monitor overdue payments, and we don't let them get too old. We too use a line of credit to smooth out the highs and lows.
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Ignatius C. Wang AIA
Senior Architect
UCI Architects,Inc.
Philadelphia PA
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