Calculate the one number that tells you how long you could keep operating if the money slowed: your months of cash on hand. Most leaders have never worked it out, and it changes how every other decision feels.
In Manage Cash Flow, after the forecast, and tracked every month thereafter.
Worked example: 60,000 dollars available, divided by 20,000 dollars a month, equals 3 months of cash. Use available cash, not your bank balance: if some of your balance is spoken for, dividing the whole thing is a comforting lie. This is why the restricted-funds work comes first.
| This month | Last month | The month before |
|---|---|---|
Under one month is a danger zone: you likely need to collect faster and arrange a bridge now, in the Working-Capital Gap Guide. One to three months is thin: you can operate, but you need a reserve, so note it for Build Financial Resilience and Reserves. Three months or more is steady: keep watching, and keep building.
Uses the True Available Cash Calculator and the Cash-Flow Forecast. Feeds the Financial Dashboard Builder and the Reserve Target Calculator.
Your answers stay in your browser on this page and are never sent anywhere. Use Save or print to keep your copy.