As a business owner and a generally efficient person, I find it important to have an accurate sense of my current financial situation. During the first couple of years, this was largely based on assumptions and guess work, but due to some significant changes in my life, I had to come up with a more structured way of dealing with this issue and so I developed my own custom-built financial planning tool: the Proactive Revenue Dashboard (PRD).
The PRD is nothing more than a "simple" Excel (or in my case Numbers) spreadsheet which allows me to register an accurate account of my monthly revenue streams, both hourly, recurring and miscellaneous. Combined with data regarding planned absences from work, this information is then used to calculate the minimum amount of work that is required to achieve a predefined yearly revenue goal.
In this blog post, I will outline all different aspects of the PRD. I will explain in great detail what it is (and what it isn't), how it helps me to stay on track and how it helps me to easily reach my financial goals. Finally, for those of you who are interested in using this tool for yourselves, I will also explain how you can get your hands on it and how you can change it to suit your personal needs and those of your company.