Project business – a real cash flow challenge

Agencies and consulting businesses are facing big challenges when it comes to liquidity planning and maintaining solvency. Complex factors have to be taken into account in both cash flow relevant ingoing and outgoing payments.

With regard to the incoming cash flow, the most decisive factor is the success of your project business. Agencies and consultants are often dependent on individual contracts, which are only paid for after delivery. If a project is delayed or needs to be reworked, payment is also delayed. It also leads to a lack of incoming liquidity if already promised projects are postponed or not commissioned at all or if customers do not keep to the agreed payment deadlines. In such cases, a lack of liquidity sometimes has to be bypassed very quickly.

While the incoming cash flow is relatively unpredictable for agencies and consultants, there are comparatively high (fixed) costs on the side of outgoing payments. On the one hand, the employment of qualified staff means that the labour costs are relatively high. On the other hand, representative offices and complex technical equipment also cost a lot of money. In addition, project-related expenses, e.g. for freelancers, travel costs and expenses, must not be underestimated. A critical factor for cash flow is the fact that, for example, expenses or invoices for subcontractors often need to be paid long before the project can be invoiced to the customer.

Agenturen und Berater

Why is liquidity planning important for agencies and consultants?

1. Liquidity planning helps to evaluate the risks of losing projects or delayed payment.

2. Well-founded planning regarding outgoing payments keeps high fixed and project costs under control.

3. The analysis of your own cash flow provides important learning to optimize your business model.

How does flowpilot help agencies and consultants?

With flowpilot you can finally perform professional cash-flow management. All you have to do is upload your existing bookkeeping as a data record. After just a few moments, the performance of your cash flow is displayed as a clear diagram. You can see exactly when cash inflows and outflows were recorded and how the monetary stock developed.

However, this cash flow analysis is just the first step. With flowpilot you can plan your cash flow into the future. With the planning tools of flowpilot you can create realistic scenarios for the future on the basis of individual accounting categories (e.g. payments from sales, payments for staff or rent etc.). These scenarios show you how your solvency will develop – up to five years ahead. You will see much earlier than before where you will find problems for your cash flow and can use well-established liquidity management tools to keep your company financially fit.

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Better understanding project-based business

flowpilot provides a clear analysis of your cash flows

Solvency maintained

Liquidity planning for the future and early identification of risks

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