InEight Estimate, you can analyze and report on your project's projected cash flow. InEight estimate has a Cash Flow form that provides a graphical representation of the cash flow, and resource utilization of your project, so you can quickly assess financing and resource needs. Let's open and review the Cash Flow form by selecting the Estimate tab, then clicking on Cash Flow. Depending on your display options, this graph can project the estimated cash flow of your project along with job financing, individual cost category costs, and resource utilization.
The X axis measures time, the left Y axis measures cost amounts, and the right Y axis measures quantities when resource utilization is displayed. From the Actions tabs, select Cash Flow Options. On this page, you can specify the timing of the cash that flows between owner, contractor, and subcontractor. The timing of your cost and pricing on the cash flow graph will display according to how you define these settings.
As a contractor, under Revenue Timing, you indicate when and how often you receive payments from the owner. Specify that bills are submitted to the owner every month on the 10th of the month. Note that you are allowing 30 days for payment to be received and the owner is keeping a 5% retainage until the end of the job. Under Cost Timing, you can indicate when and how often you pay your subcontractors and vendors.
In this case, the contract specifies that bills are to be received from your subcontractors and vendors on the 25th of each month. Change the Average Days Elapsed from receipt of invoice to payment to 30 days. Note that there is a 5% retainage you are withholding until the end of the job for your subs and vendors. Your Cost of Money represents the cost of the money needed to build a job.
These fields specify the interest rates you pay for the money you borrow, and the interest rates you earn for the money you invest to determine a total finance cost. Enter 10% for the "average annual interest rate paid to borrow money" and enter 2% for "average annual interest rate earned." Under Reporting Periods, you can specify what defines a period for your cash flow graph. Under Dates you select whether early, late, or regular start and finish dates are used to determine your cash flow timing.
It's important to note that to include any of your costs in your cash flow, they must be scheduled, and their schedule dates must be updated in the Cost Breakdown Structure
Additional Information
9977 N 90th Street, Suite 250 Scottsdale, AZ 85258 | 1-800-637-7496
© 2024 InEight, Inc. All Rights Reserved | Privacy Statement | Terms of Service | Cookie Policy | Do not sell/share my information
