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For architecture firm owners

Architecture Firm finance tools

An architecture firm bills fees by project phase or percent complete, usually monthly. Clients and developers often pay in 45 to 60 days, and some wait on their own financing. Staff are paid twice a month, so the firm carries months of work before it is paid.

Common questions

How much cash should an architecture firm keep?

Two payrolls plus a month of fixed costs at least. More if clients pay on 60-day terms or wait on financing.

Why is an architecture firm short of cash with a full backlog?

Backlog is future work. Cash comes from billing work already done and collecting it. Unbilled work and slow clients decide cash.

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