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Operational finance

Operational finance is the money side of daily delivery: invoices, payments, expenses, receivables and what each project costs. It is not accounting or tax filing. It answers questions a manager asks during the month, not the ones an accountant answers after it closes.

Operational finance vs accounting

Operational financeAccounting
UnitProject, client, monthLedger account, period
TimingDuring the workAfter the period closes
Typical questionWhat is this client still due to pay?What was the taxable profit?

The numbers it tracks

  • Receivables outstanding = invoiced − collected, grouped by how overdue they are (for example 0–30, 31–60, 61–90 and over 90 days).
  • Project margin = project value − delivery cost.
  • Cash in the next weeks = expected receipts − expected payments. See the 13-week cash flow.

How PLYNTUM handles it

Invoices, payments, expenses and receivables are on every plan, attached to their clients and projects, and receivables aging shows on the leadership dashboard. From Core, recurring invoices, project profitability and a 13-week cash flow overview are added. PLYNTUM is not accounting software: no bookkeeping, bank feeds, tax filing or payroll. See finance.

See also the invoice template, contribution before overhead and all terms in the glossary.

QUESTIONS

Common questions

PLYNTUM

Start with the work that keeps getting stuck.

Bring one project into a connected workspace. See the work, the people and the cost together.