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 about 1 month ago