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Set up cashflow on a job
Set up cashflow on a job

JACK can predict the cash inflows and outflows related to each individual job

Updated over a week ago

To help JACK more accurately estimate your cashflow you should complete the cashflow setup by either editing at the job level, or by editing within a job template.

If you don't complete the cashflow setup, JACK will apply default calculation settings to still provide a cashflow forecast. However, if you complete the cashflow setup, the forecast will be much more accurate.

To include cashflow setup in a job template navigate to Templates > Job Templates > select the relevant template > Cashflow Setup > and for each cost category in the template, you can set the payment amount percentage to be applied when each individual schedule item is completed. JACK will consider the schedule item completion date + supplier terms to calculate the date of the cash outflow. By default, JACK will evenly distribute the cash outflows over the duration of the job.

1. Predict bill issue dates

To predict cash outflows related to supplier and contractor bills at the job level, navigate to Jobs > select the relevant Job > Job Financials > Cashflow Setup and complete the following steps:

  1. Click and expand each cost category to view all the schedule items within the category.

  2. Set the percentage % of the total cost category $ value that will be due at the end of each individual scheduled item. For example, under the cost category Timber Wall & Roof Framing, your carpenter might typically invoice you 60% of the total quote when the wall frames are complete and the remaining 40% when the roof frames are complete.

  3. Once this setup is complete, click Save at the bottom right. You can then view the impact on job cashflow by navigating to the Cashflow tab in the subheading.

    Note: If you move a schedule item's end date in the Project Management tab, JACK will also move the predicted date of the outgoing cash payment (whilst also taking into account the assigned supplier/contractor payment terms).

2. Predict client invoice dates

Cost-plus Jobs

For predicting cash inflows for cost-plus jobs, JACK will use the expected cash outflow date relating to your supplier/contractor bills for each cost item and assume you invoiced your client for this amount, plus the markup rate on the job. JACK will also consider the Default Invoice Payment Terms found in Settings > Cashflow Setup.

Fixed Price and Percentage Complete Jobs

By default, JACK will not forecast cash inflows for fixed-price and percentage-complete jobs. To improve the accuracy of the job cashflow and the company-wide cashflow you will need to complete the following steps.

  1. Navigate to Jobs > select the relevant Job > Job Financials > Client Invoices.

  2. Create a draft invoice by clicking + Invoice at the top right of the screen and then add a title for the invoice. The title will typically be related to the job name and/or the percentage of the job completion. For example, High Street - Progress Claim 2.

  3. To set the predicted invoice date (issue date predicted), click the ✏️ icon next to Schedule Send. From within the side menu, you can now set the invoice trigger. This can be based on a specific date or a schedule item start or end date. You can also enter an offset. For example, by entering 4 days, JACK will wait four days after the completion of a schedule item to send the invoice.

  4. Review the Predicted Issue Date at the bottom of the side menu, and to save, click Set at the bottom right.

  5. Next, review the invoice due date. The due date will default to the invoice terms found in Settings > Cashflow Setup > Default Invoice Payment Terms. To change the due date, click on the ✏️ icon next to Due Date and edit the terms days. JACK will consider the issue date predicted and the payment terms when calculating the job cash inflows.

  6. Finally, to set the invoice amount, click on the Invoice Items button and set the $ amount or the percentage (%) of the contract value you expect to invoice the customer. This amount entered is GST inclusive. If the job is set as a percentage complete invoicing method, you will be required to enter the % of each cost code. Note that you cannot do this in a job template for % complete jobs, you must add this information at the job-specific level. You will be able to see the total contract amount and the amount remaining to be invoiced.

  7. Invoices being entered for cashflow purposes should always be saved as Draft until they are ready to be sent to your customer. A draft invoice will not be synced to Xero.

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