cash-flow-invoicing

name	cash-flow-invoicing
description	Invoice tracking, accounts receivable, cash flow forecasting, and payment optimization for CC's multi-income structure. Manages what's owed, what's coming in, and projects cash position 13 weeks forward. Covers OASIS consulting invoices, Stripe MRR, DJ gig payments, and FX conversion (USD/CAD).
triggers	["invoice","cash flow","accounts receivable","payment","billing","forecast","runway","when will I get paid","money coming in","overdue","outstanding","AR","DSO","burn rate","reserve","HST collected","Wise payment","Bennett","Stripe payout"]
tier	core
dependencies	["accounting-advisor","financial-planning"]

Cash Flow & Invoicing — Invoice Tracking and Cash Forecasting

Atlas's cash management brain. Used when CC needs to track outstanding invoices, follow up on payments, forecast cash position, or calculate runway. Covers all income sources: OASIS (Wise), Stripe (PropFlow), DJ gigs (e-transfer/cash), and Nicky's (T4 paycheck).

Overview

Atlas manages CC's cash flow by:

1. Tracking every invoice from creation through payment (outstanding, overdue, paid)
2. Maintaining a 13-week rolling cash forecast across all income channels
3. Triggering follow-up cadence automatically on overdue invoices
4. Calculating runway and firing action alerts when reserves fall below thresholds
5. Segregating HST collected and tax provisions so CC never spends money that belongs to CRA

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Section 1 — Invoice Management

Invoice Creation Checklist

Every OASIS invoice must include all of the following before sending:

Field	Requirement
Invoice number	Sequential (OASIS-2026-001, OASIS-2026-002, etc.)
Issue date	Date sent
Due date	Issue date + payment terms (default net-30)
CC legal name	Conaugh McKenna (sole proprietor until incorporated)
CC address	Current Collingwood ON address
Client name + address	Full legal entity name
Services rendered	Itemized description with dates of work
Currency	Explicit — CAD or USD
Amount before HST	Subtotal
HST line	13% HST if client is Canadian and CC is HST-registered
HST number	Only include once CC crosses $30K and registers
Total due	Subtotal + HST
Bank details	Wise account (USD invoices) or RBC (CAD invoices)
Payment terms	"Net-30. Late payments accrue interest at 2% per month."

Currency rule: Bennett pays in USD via Wise — invoice in USD. Local CAD clients invoice in CAD. Never mix currencies on a single invoice.

FX conversion for CRA: Use the Bank of Canada noon rate on the date of payment. Atlas pulls this from https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/ when calculating CAD income for T2125.

Invoice Status Tracking

Status	Definition
Draft	Created, not yet sent
Sent	Delivered to client, clock starts
Outstanding	Within payment terms, not yet paid
Overdue	Past due date, follow-up triggered
Paid	Payment received and confirmed
Bad Debt	Written off after 90+ days, no collection expected

Follow-Up Cadence

Atlas triggers follow-ups on the schedule below. Tone escalates progressively.

Day	Trigger	Action	Tone
Due date - 7	7 days before due	Friendly reminder with invoice attached	Warm
Due date	Day of	Confirm payment is being processed	Neutral
Due date + 3	3 days overdue	Polite follow-up, re-attach invoice	Firm
Due date + 7	7 days overdue	Formal notice, mention late interest	Formal
Due date + 14	14 days overdue	Escalation — flag for relationship review, consider pausing work	Escalation
Due date + 30	30 days overdue	Final notice before collections consideration	Legal

Late interest calculation: 2% per month (24% annualized) or as stated in the contract. Applied to the outstanding principal from due date forward.

Example: $2,500 invoice overdue by 14 days = $2,500 x 2% x (14/30) = $23.33 accrued interest.

Atlas does not charge interest automatically — it calculates the amount and drafts the notice for CC to review.

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Section 2 — Accounts Receivable Dashboard

AR Aging Buckets

Bucket	Days Outstanding	Action
Current	0–30 days	Monitor
Aging	31–60 days	First follow-up sent
At Risk	61–90 days	Escalation follow-up, consider pausing delivery
Critical	90+ days	Collections decision required

Days Sales Outstanding (DSO)

DSO = (Total AR Outstanding / Total Revenue in Period) x Days in Period

CC's target DSO: 30 days or less (matches net-30 terms) Warning threshold: DSO > 45 days — collection process is breaking down Critical threshold: DSO > 60 days — revenue is real but cash is not arriving

Track monthly. A rising DSO on stable revenue means clients are paying slower — address before it compounds.

Bad Debt Risk Assessment

Risk Level	Signal	Action
Low	Paid on time previously, established client	Standard follow-up
Medium	First invoice, new client, slow payer history	Require partial upfront (50%)
High	Dispute raised, unresponsive, invoice 60+ days	Pause work, escalate
Write-off	90+ days, no response, amount under $500	Write off, claim business expense on T2125

Bad debt deduction: Written-off invoices for income already reported are deductible on T2125 Line 8590 (Bad Debts). Atlas tracks this for tax filing.

Collection Escalation Process

1. Exhaust all follow-up cadence steps above
2. Send formal demand letter (Atlas drafts on request)
3. Small Claims Court (Ontario): amounts up to $35,000 — filing fee ~$102
4. Collection agency: typically 25-40% of recovered amount as fee
5. Write off as bad debt and claim deduction — often more economical below $1,000

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Section 3 — Cash Flow Forecasting

13-Week Rolling Cash Flow Forecast

The forecast rolls every Monday. Atlas updates it when CC provides new invoice status, expense confirmations, or payment receipts.

Week N Cash Position = Week (N-1) Cash + Expected Inflows - Expected Outflows

Forecast template structure:

Week	Opening Balance	Inflows	Outflows	Closing Balance	Notes
W1	$X	$Y	$Z	$X+Y-Z
W2	Prior closing	...	...	...
...
W13

Income Sources and Settlement Times

Source	Amount	Frequency	Settlement Lag	Account
Bennett (OASIS)	$2,500 + 15% rev share	Monthly	1–3 days (Wise)	Wise USD
PropFlow (Stripe MRR)	~$180	Monthly	2 business days	Stripe → Wise/RBC
DJ gigs	Variable ($200–$800)	Irregular, summer-heavy	Immediate (cash/e-transfer)	RBC
Nicky's Donuts	~$400–$600 bi-weekly	Bi-weekly	Payday (T4 employment)	RBC
Trading (Kraken/OANDA)	Variable	Irregular	2–5 days (exchange withdrawal)	RBC

Forecasting rule: Only include confirmed income in weeks 1-4. Use probability-weighted estimates for weeks 5-13.

Expense Categories

Fixed (predictable, include every week):

• Rent (monthly — prorate weekly)
• Phone plan
• Software subscriptions (Anthropic API, hosting, tools)
• Minimum debt payments (OSAP if applicable)

Variable (estimate from trailing 4-week average):

• API usage costs (scales with PropFlow/OASIS activity)
• Contractor payments
• Food and personal spending
• Transportation

One-time (include in specific weeks when known):

• Equipment purchases
• Legal/accounting fees
• Tax installment payments (March 15, June 15, Sept 15, Dec 15)
• HST remittance (quarterly if registered)

Tax Provisions (Set Aside, Do Not Spend)

These are not expenses — they are liabilities. Atlas tracks them separately.

Provision	Rate	Basis	Notes
Federal + Ontario income tax	25–30% of net self-employment income	All OASIS + DJ revenue minus expenses	Lower end at current income, rises with scale
CPP self-employment	11.9% of net income ($3,500–$68,500 range)	Net business income	Both employee and employer portions
HST collected	100% of HST billed	Only applies once registered	Not income — remit quarterly to CRA

Practical rule: Every dollar of OASIS invoice revenue — move 30% to a dedicated tax reserve account immediately upon receipt. HST billed goes entirely into a separate holding account.

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Section 4 — Payment Optimization

Billing Timing

• Invoice on the 1st of each month for recurring work
• Net-15 terms for clients with strong payment history (accelerates collection vs net-30)
• Net-30 default for new clients
• Require 50% upfront deposit for project work over $1,000 — non-negotiable

Annual Billing Discount

Offer consulting clients annual prepay at a 2-month discount (10 months billed, 12 months service):

Annual price = Monthly rate x 10
Monthly price = Monthly rate x 12
Savings to client = 2 months of billing
Benefit to CC = 12 months of cash upfront, zero collection risk

For Bennett at $2,500/month: annual option = $25,000 upfront vs $30,000 over 12 months. Offer if relationship is strong — dramatically improves cash position and eliminates DSO risk on that contract.

Stripe vs Wise Fee Comparison

Payment Method	Fee	Best For
Stripe (card)	2.9% + $0.30 CAD	Small recurring payments, PropFlow subscribers
Stripe (bank debit)	0.8%, capped $5 CAD	Larger amounts from Canadian clients
Wise (bank transfer)	0.4–1.2% FX + fixed fee	USD payments from Bennett, international clients
E-transfer (RBC)	Free (included in plan)	Canadian clients, DJ gigs, any CAD payment
Cash	Free	DJ gigs only — log immediately, declare as income

Rule: E-transfer for CAD. Wise for USD. Stripe only when client requires card. Never accept cheque — 5-7 day clearing delays cash flow unnecessarily.

Multi-Currency: When to Convert USD to CAD

Situation	Action
CAD bills coming due immediately	Convert at current rate, use Bank of Canada noon rate for records
USD stronger than usual (USD/CAD > 1.40)	Convert and capture the FX gain
Accumulating USD for US expenses	Hold in Wise USD account
Tax filing time	Convert all USD income at BoC noon rate for T2125 reporting

FX record-keeping: Log every USD-to-CAD conversion with date, USD amount, CAD amount, and rate used. Required for CRA if questioned.

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Section 5 — Cash Reserve Targets

Allocation Waterfall

When cash arrives, allocate in this order before treating the remainder as spendable:

Gross Revenue Received
  └─ HST collected → HST Reserve Account (100%, remit quarterly)
  └─ Tax provision → Tax Reserve (30% of net revenue)
  └─ Business operating reserve → top up to 2-month target
  └─ Personal emergency fund → top up to 3-month target
  └─ Remaining → available for spending, investing, TFSA contribution

Reserve Targets (CC's Current Profile)

Reserve	Target Amount	Current Status	Notes
Personal emergency fund	~$9,000 (3 months expenses at ~$3,000/month)	Track in RBC	Liquid, HISA or TFSA
Business operating reserve	~$6,000 (2 months OASIS operating costs)	Track in RBC	Covers tools, API, contractor costs
Tax reserve	30% of all OASIS + DJ income	Separate account	Federal/provincial income tax + CPP
HST reserve	100% of HST billed	Separate account	Belongs to CRA — do not touch

Total reserve target before TFSA investing: ~$15,000 + outstanding tax provision.

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Section 6 — Runway Calculation

Formula

Monthly Burn Rate = Average monthly fixed + variable expenses (exclude tax provisions and savings)
Runway (months) = Total liquid cash / Monthly Burn Rate

Exclude from burn rate: Tax reserve, HST reserve, RRSP/TFSA contributions (these are assets, not expenses).

Include in burn rate: Rent, food, transport, phone, subscriptions, API costs, loan payments.

Action Thresholds

Runway	Status	Action Required
6+ months	Healthy	Normal operations. Review quarterly.
3–6 months	Caution	No new discretionary expenses. Accelerate invoicing.
Under 3 months	Warning	Cut all non-essential expenses immediately. Chase all outstanding invoices. Explore bridge options.
Under 1 month	Emergency	Stop all non-essential spending. Contact all clients to accelerate payment. Consider credit line.

Atlas fires a runway alert whenever the 13-week forecast projects closing balance below the 3-month threshold.

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Section 7 — Reporting Schedule

Weekly (Monday — 5-minute update)

• Current cash position across all accounts (RBC + Wise USD + Wise CAD + Stripe balance)
• Outstanding invoices by aging bucket
• Any invoices that crossed a follow-up trigger since last week
• Updated 13-week forecast closing balance

Monthly (1st of month — 15-minute review)

• Full cash flow report: actual vs forecast variance
• AR aging summary with DSO calculation
• Revenue by source vs prior month
• Tax provision balance vs projected annual tax bill
• HST collected vs HST remitted balance
• Any bad debt write-offs or escalations

Quarterly (with quarterly-tax-review skill)

• AR aging trend (3-month view)
• DSO trend — is it improving or deteriorating?
• Bad debt review — any write-offs to claim on T2125?
• HST remittance due (if registered) — calculate net HST (collected minus ITCs)
• Tax installment payment due — calculate amount using prior-year method or current-year estimate
• Reserve adequacy review — are all four reserves funded?

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Section 8 — CC-Specific Income Profile

Income Source	Type	Amount	Timing	Account	Currency	Predictability
Bennett (OASIS consulting)	Self-employment	$2,500 + 15% rev share	Monthly	Wise	USD	High
PropFlow (Stripe MRR)	Self-employment (SaaS)	~$180/month	Monthly	Stripe → Wise/RBC	CAD/USD	High
DJ gigs	Self-employment	$200–$800/gig	Irregular (summer-heavy, Q2-Q3)	RBC (cash/e-transfer)	CAD	Seasonal
Nicky's Donuts	Employment (T4)	~$400–$600 bi-weekly	Bi-weekly paydays	RBC	CAD	High
Kraken trading	Capital gains / business income	Variable	On withdrawal	RBC	CAD	Unpredictable
OANDA trading	Capital gains / business income	Variable	On withdrawal	RBC	CAD	Unpredictable

Forecasting rules by source:

• Bennett + PropFlow: include at full value in weeks 1-8 (contracted/recurring)
• Nicky's: include every 2 weeks at average net-of-tax amount
• DJ: include only confirmed booked gigs. Apply 60% probability to unconfirmed summer inquiries.
• Trading: exclude from cash flow forecast entirely — treat as a windfall when it arrives

Bennett Invoice Workflow

1. Send invoice on the 1st of each month (OASIS-2026-XXX)
2. USD amount — $2,500 base + any rev share calculation from prior month
3. Payment arrives via Wise within 1–3 days
4. Log USD received, convert to CAD at BoC noon rate for T2125
5. Move 30% of CAD equivalent to tax reserve immediately

Stripe Payout Workflow

1. Stripe pays out every 2 business days automatically
2. Lands in Wise or RBC depending on payout destination configured
3. Log gross Stripe revenue (before Stripe fees) as income on T2125
4. Stripe fees (2.9% + $0.30) are deductible business expenses — log separately

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Integration Points

Skill / Module	Purpose
skills/accounting-advisor/SKILL.md	T2125 income reporting, bad debt deduction, FX income calculation
skills/quarterly-tax-review/SKILL.md	HST remittance, tax installment payments, quarterly reserve check
skills/financial-planning/SKILL.md	TFSA/RRSP contribution decisions after reserves are funded
skills/tax-loss-harvesting/SKILL.md	End-of-year cash planning around tax-loss trades
finance/tax.py	Tax provision calculations, quarterly installment estimates
docs/ATLAS_BOOKKEEPING_SYSTEMS.md	Chart of accounts, monthly close routine, KPI tracking
docs/ATLAS_HST_REGISTRATION_GUIDE.md	HST registration threshold ($30K), ITC claims, quick method
docs/ATLAS_INSTALLMENT_PAYMENTS.md	CRA quarterly installment schedule, safe-harbor methods, penalty avoidance