Entering hourly charges revenue streams

If your business charges customers based on the amount of time spent providing a service, you can use the Hourly Charges revenue stream model in your forecast.

This revenue type is useful for businesses such as legal services, counseling, personal training, music lessons, consulting, freelancing, and other services billed by the hour.

Upmetrics gives you two ways to set up an hourly charges revenue stream. You can describe your service and let Finance AI draft the revenue groups and streams for you, or you can create them manually.

Adding an Hourly Charges Revenue Stream

Creating Hourly Charges Revenue with Finance AI

1

Go to the Finance Forecasting module, select the Forecast tab, and open the Revenue section.

You will see a guided revenue setup asking What does your business sell?

2

Describe your hourly service in plain text. Include details such as the service you provide, the number of billable hours you expect, your hourly rate, and whether these amounts are expected to change over time.

Once you have entered the details, click Draft my revenue.

TIP: Include your expected billable hours, hourly rate, and any expected changes in demand or pricing. This helps Finance AI create a more relevant starting point.

3

Finance AI will create a suggested starting point for your revenue forecast.

Review the proposed revenue group, stream name, billable hours, pricing, and other assumptions. You can click the Edit icon next to a stream to make changes before adding it.

If the suggestions look correct, keep the required streams selected and click Add these streams.

NOTE: The suggested figures are only a starting point. Review the assumptions and update them to match your actual expected hours, pricing, and business conditions.

4

The selected revenue groups and streams will be added to your forecast.

From the Revenue section, you can review each stream and update its assumptions whenever required.

Creating Hourly Charges Revenue Manually

1

If you do not want Finance AI to draft your revenue streams, click I'd rather set it up myself from the revenue setup screen.

2

Enter the name of your Revenue Group, then enter at least one revenue stream inside that group.

You can click Add another stream to add more streams to the same group or Add a group to create another revenue group.

When you are ready, click Create these.

3

Upmetrics will create the revenue stream and open its Assumption window.

Under Basic Info, review the revenue stream name and select Hourly Charges as the Revenue Stream Type.

4

Customer Hours: Enter the number of billable hours you expect to provide for this service.

If you expect the same number of hours each period, select Constant Amount and enter the applicable number of hours.

If you expect your billable hours to change over time, select Varying Amounts Over Time and enter the expected hours for each applicable period.

5

Price: Enter the amount you charge for each hour of service.

You can use a constant hourly rate or enter varying prices if your hourly rate is expected to change over time.

If applicable, enter the sales tax rate for the revenue stream. Upmetrics will use this information when calculating your forecast.

6

Refund: Enter the refund rate you expect for this revenue stream, if applicable. This allows your forecast to account for estimated refunds issued to customers.

7

Start and End Period: Select when the hourly revenue stream should begin and, if applicable, when it should end.

Review your assumptions and click Save.

Once saved, the hourly charges revenue stream will appear under its revenue group in your forecast. You can open the stream again whenever you need to review or update the expected hours, hourly rate, tax, refund, or timing assumptions.

Where does this entry appear in the financial statements?

Your hourly charges revenue streams will be used to calculate the applicable figures in the Profit & Loss and Cash Flow reports.