Architecture Firm monthly financial report
An architecture firm report should show work in progress not yet billed. That is cash earned and not yet asked for.
The six numbers for an architecture firm
| Number | How to work it out | What it warns you about |
|---|---|---|
| Utilization | Billable hours ÷ available hours | Capacity paid for but not sold |
| Work in progress, not yet billed | Unbilled fees earned to date | Cash earned but not asked for |
| Days to collect | What clients owe ÷ monthly revenue × 30 | Developers stretching payment |
| Consultant costs passed through | Consultant invoices ÷ revenue | Paying engineers before the client pays you |
| Largest client, share of revenue | Their billing ÷ revenue | Concentration risk |
| Weeks of payroll in the bank | Cash ÷ weekly payroll | Room for a project on hold |
Use these six in place of the general ones on the template's Report tab.
What to watch in an architecture firm
- Projects on hold with staff still assigned
- Developer clients waiting on loan draws
- Consultant invoices due before client payments
Not sure how much cash you should hold? Use the architecture firm cash calculator.
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