If your business offers any services on an hourly basis, you may want to use the Billable Hours revenue stream model in your forecast. Some examples include legal services, counseling, personal training and music lessons. You might also use billable hours if you run your own company, but also subcontract or freelance for other businesses. An independent designer, for example, might do jobs for her own clients, but also do contract work for other design agencies, billing them hourly for her time.
Adding a billable hours revenue stream
- To add a revenue stream, click the Forecast tab. Then click the Add Revenue Stream button:
- Enter a name for your billable hours revenue stream, the click Next:
- Next, choose Billable hours for the revenue stream type. Then click Next:
- Indicate how many billable hours you'll have for this revenue stream. This can either be a constant amount per month or year, or varying amounts.
If you chose Constant amount, enter the number of hours you estimate to bill per month or year:
Indicate when this revenue stream will begin. Then click Next:
If you chose Varying amounts over time, enter the number of billable hours you forecast in any months you prefer. Then click Next:
- Finally, indicate how much you will charge per hour for this service. This can be either a constant rate or one that varies over time (as in seasonal pricing):
- Click Save & Close.
Editing or deleting a revenue stream
To edit an existing revenue stream:
- In the Revenue table, click on the name of the revenue stream you'd like to edit:
- The edit overlay will appear. You can click on any of the steps across the top that you wish to edit:
- Make your changes and click Save & Close. For more details, see How do I edit or delete forecast entries?
To delete a revenue stream:
- In the Revenue table, click on the name of the revenue stream you'd like to delete:
- Locate the trash can icon in the lower left corner of the overlay. Hover over it, and click Delete:
- Click Confirm.
Where does this entry appear in the financial statements?
Your revenue streams will be used to calculate the highlighted lines the Profit & Loss, Balance Sheet, and Cash Flow table shown below: