Bill. Revenue is what makes Calico’s work possible. Now, I’ve got just a stellar crew, and their work is shipshape. But without the income that comes from the work, we couldn’t stay above water. We couldn’t hire more staff as we get busier. And we couldn’t afford that swell new competition-style foosball table Ian convinced me to install in the break room. But it’s not just about the money we have now. If I hire a crewmember, I have to make sure I can afford to pay them now, but I also have to make sure I have the money to keep paying them, so we aren’t left high and dry. So there’s some revenue forecasting in there.
Now, I’m not sure how this revenue-forecasting thing works. It sounds like witchcraft. But my assistant tells me it isn’t — she says that Workamajig automatically takes all the information from all of our projects and uses it to predict how much money we’re going to have. Sounds like witchcraft — or sorcery — to me.
Problem: How do I know how much money we have coming in so we can plan for the future?
Solution: Workamajig’s revenue-forecasting functions work like magic.
Crystal. It’s just accounting, Bill. Not witchcraft or sorcery. Workamajig takes data from everything we have in the system — opportunities, project estimates, project billing schedules, retainers — and feeds it into a single revenue forecast. The system can look at project schedules to know when billing is likely to go out and payment is likely to come in. It knows the difference between a basic contract and a retainer, and that they should be treated differently. It even knows how to factor in time and materials.
Bill. Witchcraft.
Crystal. It’s not witchcraft
Bill. You once said that Workamajig makes you look like a wizard.
Crystal. That’s just an expression.
We used Workamajig’s revenue-forecasting functions when Bill was hoping to hire Jackie earlier this year. At the time, we weren’t actually liquid enough to comfortably pay her salary. But I had three prospective clients in the Opportunities section of Workamajig, all far enough along that we were pretty sure we’d be closing soon. We factored in approved projects, retainers and unpaid invoices, and we generated our report. The report showed that while we weren’t liquid then, we’d have enough revenue coming in three months from then that we’d have no problem paying her salary.
Bill. And it’s swell. With our new account executive, we’ve been able to do more work, which brings in more revenue, which lets us expand the agency and even spring for perks like the new foosball table, or company trips on my yacht. All thanks to the magic of Workamajig.
Crystal. Seriously, there’s no magic.
Bill. You don’t think it’s a little magic?
Crystal. Yes. Yes, Bill, you’re exactly right. It’s magic.
Bill. I knew it.
- Bill, President and CEO, and Crystal, New Business Director, Calico Agency
