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  • Pro-Forma

Verify Cash Levels Tool


The Plan Cash Levels tool is not an input but a check to see the results of your model. This shows the total amount of cash your business has as the end of each month.


If your model has a negative cash amount in any month, the cell for that month will turn red as in the example below.


A negative amount of cash indicates that with the current assumptions, the business will be bankrupt in that month. An investor-ready financial model will not show any negative cash amounts.


One clarification: it is common for a startup business to have a negative Net Income value for the first year or two as the business is getting ramped up on investment or debt capital. As long as the business has a positive Cash Flow (shown here and in the Statement of Cash Flow), the business can still run with a negative Net Income (shown in the Income Statement)


The best way to troubleshoot negative cash numbers is to adjust the direct pricing and cost assumptions under each Offering. Also be sure to select the appropriate “Type and Frequency of Billing” for each offering. A blank value here will not apply the income to your cash flow.


If you would like to test different scenarios without losing your original assumptions, you can “Save As” or copy and paste your entire Excel workbook to tweak it and compare the two results.


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