Nadine runs a small strategy consulting firm in Lubumbashi. Her clients are transport SMEs and service providers to mining companies. They pay reliably, but rarely right away: 30 days after the invoice, sometimes longer.
A profitable engagement, a tight cash position
Nadine signs an advisory engagement worth 1,500 USD. She secures a 30% kickoff deposit, 450 USD. To meet the deadlines, she brings in a subcontracted analyst for 300 USD, paid in the first week.
- Realized revenue: 1,500 USD.
- Collected at kickoff: 450 USD.
- Client receivable due in 30 days: 1,050 USD.
- Direct cost: 300 USD of subcontracting.
- Contribution margin: 1,500 − 300 = 1,200 USD.
A high margin does not mean a full cash box
On paper, the engagement generates a 1,200 USD margin. In the cash box, after paying the subcontractor, only 450 − 300 = 150 USD remains for a month. Many firms discover this gap too late.
Three habits to protect cash flow
- Negotiate a deposit that covers at least the direct costs: here, 450 USD covers the 300 USD of subcontracting.
- Record the receivable's due date at signing, and follow up on day 30.
- Never record the final payment as a new sale: it settles the 1,050 USD receivable, and revenue stays at 1,500 USD.
The trap to avoid
Adding a USD engagement and CDF expenses into a single total distorts the picture. Each currency is tracked separately; an indicative rate can inform, never replace the books.
In KOBETA
Track every receivable with its due date: when it is paid, KOBETA records the payment against the original operation, without counting your revenue twice. The 1,200 USD remains a margin before fixed overhead and payment for your work.