Your cash reserve is the root of your business success. For accurate financial forecasting, it’s crucial that you track:
- Subscription-related cashflows (expansions, downgrades, and churn)
- Cash burn
Note that cash runway can also be negative. A profitable company can have a negative monthly burn rate because there is more revenue than expenses.
Data sources include:
- Integrations to Subscription Management Software
- Integrations to Accounting Software
- Integrations to Payroll Software Software
- Manual entries in Calqulate
- Data import via API
Cash Runway = cash balance / monthly burn rate
Cash Runway is generally used as a KPI by loss-generating startups, as the cash runway measures the time at which the company uses up its available cash to cover operating expenses (Formula: company cash / monthly operating expenses). The higher the burn rate, the faster the company will run out of cash unless it can attract more funding or receives additional financing.
Updated 12 months ago