When the money runs out, and how much has to go wrong first CASHFLOW
A business does not fail because it is unprofitable. It fails because on a particular Tuesday there is less in the account than the payroll needs, in a year that ends profitably.
The horizon
Thirteen weeks is the usual horizon, because it is far enough to see a quarter-end and near enough that the figures are real rather than aspirational.
What comes in and goes out
Every is how many periods between repeats; leave it at nought for something that happens once. Until is the last period it runs, or nought for the end of the horizon.
The shape of it
How much has to go wrong
Period by period
The working
How it works
CASHFLOW is a 13-week cash forecast for a small business or a freelancer. Most businesses that fail run out of cash on a particular day rather than being unprofitable over the year, so it shows the lowest balance you will reach and when, not just the closing figure. It also shows how much a late payment or a shortfall could grow before you would miss payroll or a bill, and treats the two separately. Your figures stay in this tab.
Doing this often? OBSCURA Books keeps the books this forecast should come from: bank imports, invoices and bills. On its own, US$4 a month; with everything else, US$9 a month or US$79 a year. 7 days free.