The request
“Create a Q3 cash flow diagram for Northwind Studio: opening cash $62,000, client retainers $84,000, project milestones $96,000, contractors $58,000, salaries $71,000, software $9,000, tax reserve $22,000, and closing cash $82,000.”
Then tryAdd a $12,000 equipment purchase.Change project milestones to $110,000.
What is in this drawing
Read the decisions behind it.
01Match labour to milestones
contractor costs should be covered by expected project receipts.
02Hold tax cash aside
do not treat the tax reserve as working capital.
03Review recurring tools
show software costs separately from delivery labour.
Use for service businesses that receive retainers and milestone payments.
More like this
Other examples in this family.
FAQ
Common questions
Why separate retainers and milestones?
They have different timing and depend on different client commitments.
What is a tax reserve?
Cash set aside for an expected tax payment so it is not spent on operations.
Can this be quarterly?
Yes. Use whatever period matches the payment decisions you need to make.