Entering hourly charges revenue streams

Are you going to charge your customers on an hourly basis? If your business offers any services on an hourly basis, you may want to use the Hourly charges revenue stream model in your forecast. Some examples include legal services, counseling, personal training, and music lessons. You might also use hourly charges if you run your own company but also subcontract or freelance for other businesses.

An independent designer, i.e., might do jobs for her own clients, but also do contract work for other design agencies, billing them hourly for her time.

Adding Hourly Charges Revenue Stream:

1

In your financial forecasting tool, navigate to the Revenue tab and click on the Add Revenue Stream option:

2

A pop-up will appear. Enter the Revenue Stream group title, then click on Save & Next.

3

After saving the group, click on the Add Revenue Item button to begin entering individual revenue sources within that group.

4

A forecast form will open. Here, add the name of the revenue stream.

There are 5 ways to forecast revenue streams. You'll choose the type of Hourly Charges when you set up a revenue stream by clicking the appropriate radio option.

5

Customer Hours: Enter the number of hours of this service you think you'll provide. This can be either a constant amount per month or varying amounts.

If you chose a Constant amount, enter the number of customers you forecast for each month:

If you choose Varying amounts over time, enter the number of customers you forecast to sell your service to in any months you prefer:

6

Price: Enter the amount you will charge for each customer of this hourly service. You can enter a constant price or varying prices over time:

Enter the sales tax rate applied. The system will calculate your taxes and add them to the forecast automatically.

7

Refund: Unexpected refund risks are involved with your service business if you are going to provide a refund to your customers. Let's enter how much refund rate you estimate over the revenue generated by Revenue Stream:

8

Start and End Date: Indicate when the revenue for this service charge sales stream will begin and finish. Click on Save.

Editing or Deleting a Revenue Stream:

To Edit an Existing Revenue Stream:

1

Within a Revenue group, near the finance item, click on the pencil icon to edit:

2

A forecast sheet will appear. To start editing the revenue stream item, click on the Edit option:

3

In the form that appears, you can click on any of the input fields that you wish to edit:

4

Make your desired changes, and click Save to apply the changes.

To Delete a Revenue Stream:

1

Locate the revenue stream group you want to remove.

Click on the three-dot next to it and select Delete Group from the dropdown.

2

A confirmation pop-up will appear. Click Ok, Remove to permanently delete the revenue group.

3

To delete an individual revenue item within a group, go to the respective revenue group, click the three-dot menu next to the item, and choose Delete Item.

4