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SOP-08: Financial Management & Reporting Protocol

The Automation Surgeon's Financial Health Framework
Version 1.0
Owner Founder
Trigger Monthly financial review, quarterly planning, annual budgeting.
Purpose To maintain financial health, track performance metrics, and ensure sustainable growth through systematic financial management and reporting.

Strategic Context: This document provides financial operations procedures. For the strategic framework on financial engineering and revenue architecture, see SOP-48: M365-Native Solopreneur Enterprise Playbook (Phase 5: Financial Engineering).

1. Core Processes

1.1. Revenue Tracking

  • Project Revenue: Track by client, project type, delivery method
  • Recurring Revenue: Maintenance contracts, retainer agreements
  • Pipeline Value: Weighted probability of opportunities
  • Collection Management: Payment terms, follow-up procedures

1.2. Expense Management

  • Tool Subscriptions: n8n, CRM, design tools, hosting
  • Professional Development: Certifications, courses, conferences
  • Marketing & Sales: LinkedIn Premium, content creation, networking
  • Legal & Compliance: Business registration, insurance, legal counsel

1.3. Profitability Analysis

  • Project Margins: Revenue vs. time investment per project type
  • Client Profitability: Lifetime value vs. acquisition cost
  • Service Line Analysis: Most profitable automation types
  • Time Tracking: Billable vs. non-billable hours

1.4. Cash Flow Management

  • Payment Terms: 50% upfront, 50% on completion
  • Emergency Fund: 3-6 months of operating expenses
  • Tax Planning: Quarterly estimated payments, deductions tracking
  • Investment Strategy: Reinvestment vs. personal income

2. Key Reports

  • Monthly P&L Statement
  • Cash Flow Forecast (3 months)
  • Client Profitability Dashboard
  • Pipeline Value Report

3. Success Metrics

  • Monthly recurring revenue growth: 10%+
  • Project margin: 30%+
  • Days sales outstanding: <30 days
  • Cash runway: 6+ months