USA Monthly Income Projection Based on a 12 Month Divided Equal Revenue

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I have prepared the attached spreadsheet and want to confirm if the calculations I have done are correct.

I tried to upload the excel file but the website does not allow me to do it.

In brief there are few variable at the top of the sheet which I can change and based on it the calculations change.

The initial revenue is 50k for each month and there is a 10% retainage from revenue for each month which accumulates.

Screenshot 2024-04-15 170524.png
 

kirby

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Check the retainage assumption. If the client is going to withhold 10% of each payment, then the retainage for each month is 10% of the monthly revenue or only $5,000 each and every month. That assumes you bill monthly and are paid monthly.
Also, retainage is per payment so it depends on how often you will bill the client. The above assumes it is monthly but check that to see if that assumption is reasonable per contract terms.
One other thing, the use of the percentage of completion method is preferable to this straight-line assumption method. A conversation with your engineers would help you estimate the periods when most costs would be incurred, most work done and therefore gives an estimate of percentage of completion for your estimation purposes. And if the contract stipulates certain completion waypoints and due dates then incorporate that info into your estimate.
 
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