Calculating Cash Flows and Revenue for Projects

In this meeting, Bailey is discussing a problem he is trying to solve related to calculating and tracking closed deals, projections, upcoming income, and actual income. He explains his current approach of calculating the closed amount, dividing it by two for upcoming income in the same month, and then distributing the remaining amount over the following months. Bailey is looking for advice on how to improve his approach.

The other participants, including Eddie and Anaya, suggest breaking down the problem into smaller parts to better understand and summarize the data. Eddie suggests creating records for each individual deal and including dates for expected payments and whether they have been received or not. Anaya suggests using a waterfall analysis to sum up the inflows for each month. They both recommend using a database to store and update the data. The participants emphasize the importance of understanding the cash flow and revenue recognition aspects of the problem. They suggest creating a clear list of transactions with projected dates and amounts, and then summarizing the cash flow by month. Bailey mentions that he plans to add the logic for adding income for future months based on a certain number of weeks after the deal is closed. He acknowledges that he may need to resort to using a database to ensure accuracy and plans to check the results against a source of truth. Overall, Bailey appreciates the suggestions and plans to rewatch the meeting to further understand and implement the solutions provided.

(Source: Office Hours 2/27 )

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