What is an estimate?
On Cash Flow Frog the term Estimate refers to estimates, bids, quotes and proposals, created by your company for prospective customers.
Before businesses start a job they create an estimate on their accounting software and send it to their customers. Estimates are converted into Invoices after customers accept them or when the work is complete.
How are estimates used on Cash Flow Frog?
Estimates represent transactions that may take place in the future and affect your cash flow, therefore we show them as one of your Cash Flow Metrics, at the top of the forecast page, where they are easily noticed.
How do estimates affect your forecast?
Estimates are added to your forecast as future transactions and affect your cash balance going forward. In other words, the forecast refers to each estimate as a transaction that will take place in the future.
Let's say we are a marketing agency and a client reaches out to us, asking for a branding project. On our accounting software we issue the client an estimate of $10,000 to be paid in 3 months, when the project is finished.
Since our accounting software is synced with Cash Flow Frog, the estimate is integrated into our forecast. Hence, the forecast will show the estimate as a $10,000 cash in movement, 3 months from today.
Once the work is complete we convert the estimate into an invoice on our accounting software. Again the data is synced with Cash Flow Frog and an invoice is shown in your forecast, instead of the estimate.
Finally, when the client pays the invoice, its status changes from outstanding to paid and the transaction appears in our past cash movements.
How to edit estimates
Estimates can be easily edited in the 'Edit scenario' popup.
Please notice that editing estimates affects only the Scenario you are in and not all scenarios. As well, all edits on Cash Flow Frog affect only your forecast scenarios and never affect your accounting software data.
Exclude or include estimates in your forecast
Some businesses exclude all estimates from their forecast because they either don't normally use estimates or don't keep their estimates data accurate on their accounting software. For example, if they issue a lot of estimates but don't necessarily update which estimates were accepted by their clients.
In your Estimates settings you can include/exclude all estimates from a scenario with a single click.
Exclude or include specific estimates in your forecast
The software also allows you to include or exclude single estimates. If an estimate is not relevant to your forecast scenario you can simply switch it off and it won't be included in the scenario.
Edit estimates' data
You can edit the expected date, details and amount of each estimate separately and in bulk.