September can feel like a fresh start. Clients return and diaries fill up. Yet only four months remain to reach your revenue target, reserve tax and protect your cash buffer. Do you know what your business must still earn before 31 December?
A full diary — and a €90,000 shortfall
Consider a consultancy with three employees. Its annual revenue target is €400,000. By the end of August it has invoiced €238,000 and has €72,000 of confirmed work for September through December. Expected annual revenue is therefore €310,000: a €90,000 shortfall.
The autumn diary looked almost full, but it included conversations, proposals and work without final confirmation. Not all scheduled work would be invoiced before year-end.
Start with four figures
- revenue actually invoiced to date, excluding VAT;
- completed work not yet invoiced;
- firmly confirmed assignments for the final four months;
- cash required for fixed costs, tax, drawings and a buffer.
The consultancy had €14,000 of completed work waiting to be invoiced. Sending those invoices reduced the gap to €76,000. These four figures show how much work still needs to be sold, delivered and paid for.
€76,000 of extra revenue is not automatically the right answer
Additional revenue only creates value if the work produces sufficient margin and fits available capacity. The consultancy would need a freelancer costing about €8,000 per month. The relevant question was no longer revenue alone, but the profit left after delivery costs.
A €25,000 project required substantial external capacity and carried a 60-day payment term. A €12,000 project had a stronger margin, could be delivered mainly by the team and started with a deposit.
What can you still influence in September?
The business invoiced completed work immediately, introduced a 30% deposit, prioritised two higher-margin proposals and repriced a project containing unpaid custom work.
Financial control does not always start with working harder. It starts with separating revenue, margin and available cash. Read more in Why profit is not the same as cash flow.
Ask yourself this before October
Add invoiced revenue, completed but unbilled work and confirmed assignments. Compare the outcome with the amount required for costs, tax, desired profit and buffer.
Impact Growth Partner helps SME owners turn figures into decisions about cash flow, profitability, capacity and business strategy. Start with the free growth and value scan.
Founder of Impact Growth Partner. She helps SME owners translate financial information into better decisions about cash flow, profitability and business value.
About Mylène →