Cash flow plan
A month-by-month plan of money in and out for each project, filled from the budget, schedule, bills, wages and loans. Actual figures sit beside it, with the most money the project will need and when.
PLANSFrom Growth
The problem it solves
- The bank asks how much the project needs and when, and the answer is a spreadsheet made once.
- Money runs short in the month the slab and the steel bills fall together.
- Nobody compares what was planned to come in and go out with what really did.
How it works
- On the project, press Cash Flow (or open Construction > Projects > Finance > Cash Flow > New). A project has one plan.
- Press Update. The plan makes a row for every month from the project's start to its finish and places each figure in its month.
- Planned money out is the approved budget; planned money in is the contract value. Neither has dates, so they are spread over the months by how much work falls in each. That is by the schedule's activities if you use the schedule, else evenly.
- Actual money is added on its date: posted vendor bills for material, approved subcontractor bills, approved and paid wages, typed costs spent, approved client bills.
- On the Typed Entries tab, add what no other screen knows, such as a land instalment or approval fees.
- Read Most Money Needed and the month it falls in. Press Chart for the line chart and the pivot. The plan updates itself every night.
Everything it does
Month by month
- Planned in, planned out, planned net and planned running total
- Actual in, actual out, actual net and actual running total
- Variance of actual net against planned net, for past and current months
- Most Money Needed: the lowest planned running total, shown as a positive amount, with its month
- From and To dates: empty means the project's start and planned finish
Where each figure comes from
- Where From tab: one row per source, month, in or out, planned or actual
- Budget: approved budget's current total (a draft budget while none is approved) as planned out
- Schedule: spreads undated amounts by the days of planned activities in each month, so the plan follows the S-curve
- Material: posted vendor bills and refunds of the project's purchase orders, actual out
- Subcontracts: approved bills at the net payable, actual out on the bill date
- Wages: approved and paid wage runs at net pay, actual out at the end of the period
- Client bills: the contract value as planned in, approved bills at net as actual in
- Typed costs spent: actual out on their dates
Developers and loans
- Unit sales (Developer package): buyers' payment stages as planned in on their due date; receipts in and refunds out
- Project loans (Lending add-on): drawdowns asked as planned in, released ones as actual in; instalments planned and paid as out
Updating and reports
- Update on the plan, and every night for projects not done or closed
- Construction > Projects > Reporting > Cash Flow Chart: line chart and pivot
- Typed Entries: date, what, in or out, planned or actual, amount
Who uses it
Construction ManagerMakes the plan, adds typed entries, reads the peak need and the variance.
Finance headUses the monthly need to plan funding and drawdowns.
Managing directorChecks the chart before agreeing new commitments.
Where you use it
- Web: Construction > Projects > Finance > Cash Flow, and the Cash Flow button on the project
- Web: Construction > Projects > Reporting > Cash Flow Chart
- Not in the phone app
What you control
Settings
- From and To dates per plan (the project's dates to start with)
- Typed entries for land, fees or a sales forecast
- The plan follows the schedule when it is in use; otherwise months weigh the same
Questions
Do we have to type the plan month by month?
No. Press Update and it is built from your budget, contract value and schedule, and filled with actual money from bills, wages and purchases. Type only what no other screen knows.Does it follow our programme of work?
Yes, when you use the schedule. Each month weighs the days of planned activities in it, so the money follows the work. Without a schedule the amounts are spread evenly between the project's dates.Are hire bills for plant counted?
Not as their own source. Plant cost reaches the budget from log sheets, and so the planned money out, but hire bills are not placed as actual money out. Add them as typed entries if you need them.Is it the bank's cash flow statement?
It is a project plan of money in and out, not an accounting statement. Actual figures come from approved and posted documents; payments in the bank are not matched.Related features
MONEYBuilding budget with 80 and 100 % alertsOne budget per project, by cost code and place, approved once and changed only by approved revisions. Costs from site flow into it every hour. The project manager is told when a line passes 80 % and 100 % used.PLANT, SCHEDULE, QUALITY, SAFETYSchedule, critical path, Gantt and look-aheadPlan the building as linked activities by place, with durations in working days. Schedule works out the dates, the float and the critical path, and a baseline shows every slip. The daily site report moves progress on, and the look-ahead shows the next three weeks.MONEYClient progress billsBill the client on the contract items. Each bill shows this bill, previous and up to date per item, the retention the client keeps and the advance taken back. It is approved inside first, prints as a progress bill, payment application or interim payment certificate, and becomes the customer invoice.SITEWage runs, advances, bank file and slipsPay site workers from their attendance. A wage run fills itself and works out basic, overtime, deductions and advance recovery. It goes for approval, then is paid by a bank file or in cash against the worker's signature. Wage slips print in each worker's language.MONEYCommitments, forecast and over-budget checksEvery budget line shows what is already ordered or contracted, what is spent, what is still to come and where the line will end. A project purchase order that goes past what is left of its line needs a Construction Manager to confirm it.
See your next site report on it.
Tell us what you build, how many sites you run and how your client hears about progress today. We will set up a project with you and send your first daily update.