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, for example, might do jobs for her own clients, but also do contract work for other design agencies, billing them hourly for her time.

Adding a Hourly Charges Revenue Stream:

1

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

2

In the overlay that appears, Enter the  Revenue Stream title and click on Save & Next:

3

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.

4

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

5

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.

6

Refund: Unexpected refund risks 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 revenue regenerated by Revenue Stream:

7

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

Editing or Deleting a Revenue Stream:

To Edit an Existing Revenue Stream:

1

In the Revenue groups, click on the grid icon of the revenue stream you'd like to edit:

2

In the overlay that appears, To start editing the revenue stream, Click on edit:

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

In the Revenue groups, click on the trash on the revenue stream you'd like to delete:

2

Click on Ok, Remove to confirm the action:

Where does this entry appear in the financial statements?

Your revenue streams will be used to calculate the highlighted lines in the Profit & Loss, Balance Sheet, and Cash Flow table shown below: