Cash Flow Management Tips for Small Firm Architects - Shared screen with speaker view
Schedule a 30-min consultations with us:
How did you arrive at a salary scale for everyone in the firm and is it transparent to your employees?
Thx Julie - will ask that at end
What is the amount of the retainer?
We’ll be talking about retainers a bit more and I’ll make are to ask when that comes up
attendees are muted
Cash flow is important. We collect a 10% to 20% deposit up front and invoice bi-weekly. When clients balk, we tell them that "we are not bankers..." We track our WIP against the deposit and when it gets close, we slow our work progress and start making phone calls to speed up collection.
What benefits do you offer your employees?
Really interested in roles and definitions of those roles as well as how those employees might grow in the firm- how do they move up in a small firm vs having to leave for them to move up and advance.
Owen, we’re actually planning a future webinar specifically about “how to outsource bookkeeping” - but we can get you that info
Nancy, Matt will be soaking about “best practices for Collections calls in a moment
Julie B, Matt will be speaking about Public work collections as well
What is your billable % expectation for you employees and yourself?
Do you have employees help to create the proposals?
Do you have templates for tracking docs?
What is the goal for operating cash flow? Cash for the next X weeks or months?
Chris, I’ll ask that at the end —
Julie, we’ll get as many of your q’s answered as we can - but some we may do after the webinar offline with you
In addition to what Matt said, don't resume work until they've paid in full AND have them pay for at least some future work up front before you resume work (i.e. ask for an additional retainer).
Retainers: we hold our retainers in a non-interest bearing checking account, separate from our operating account.
What about forms of payment that speed up getting paid? Is taking credit cards recommended? Is adding for the percentage suggested?
ACH payments have been well received by our clients. These cost us 0.50 per transaction.
My opinion, ACH is great. Not a fan of credit cards, though. A 2%-3% credit card fee reduces your profit by that amount... so a 15% profit would be 12%...
Thanks, Lindey and Lindsay.