-
Notifications
You must be signed in to change notification settings - Fork 0
Commit
This commit does not belong to any branch on this repository, and may belong to a fork outside of the repository.
- Loading branch information
1 parent
f541bdb
commit beb42b5
Showing
2 changed files
with
21 additions
and
0 deletions.
There are no files selected for viewing
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Original file line number | Diff line number | Diff line change |
---|---|---|
@@ -0,0 +1,21 @@ | ||
--- | ||
publishDate: 2024-03-14T00:00:00Z | ||
title: Your Cash Runway | ||
excerpt: 'Companies appreciate knowing if and when they will run out of money. This is the most requested services of Fractional CFOs.' | ||
description: | ||
tags: | ||
- cashflow | ||
- forecasting | ||
- fractional cfo | ||
image: "~/assets/images/hourglass.jpeg" | ||
--- | ||
|
||
It may seem obvious, but companies need to have a deep understanding of if and when they will run out of money. Insolvency is the inability to meet current obligations. Even though sales may be increasing, it is possible to run out of money for a variety of reasons. This causes unnecessary stress for everyone in the company, especially the Accounts Payable staff. | ||
|
||
One of the primary duties of a CFO is to provide accurate cash flow forecasting. We are fans of [CashFlowTool](https://www.cashflowtool.com/). This is an easy to use, Excel-based tool. It allows you to look at all incoming invoices and outgoing bills and see exactly what your cash balance is predicted to be. | ||
|
||
Cash Flow forecasting is not the same as a longer-term strategic forecasting. Whereas cash flow forecasts are short-term, highly accurate tools with little uncertainty, a strategic forecast may be several years in scope and is by its nature uncertain. We’ll discuss strategic forecasts next week. | ||
|
||
Because of the emotional effect of running out of cash, an accurate cash flow forecast is the most requested and appreciated service that Fractional CFOs offer. We will keep the cash flow forecast up to date and discuss it with you regularly. | ||
|
||
If you are losing sleep over the possibility of running out of money, please contact us. We want you to sleep well at night. |