Notes on cash, for owners.
Practical pieces on forecasting, cash floors, slow seasons and big decisions, written by people who have kept the books for small businesses.
Forecasting
Cash basics
Planning
Decisions
Every article.
One new piece most months. Each one ends with something you can do in your own numbers that week.
Forecasting
The forecast lenders, turnaround advisers and careful owners all reach for. What it is, why thirteen weeks, and how to build one in an afternoon.
Priya Sethi
· 4 min read
13
Cash basics
A cash floor is the balance you agree never to go below. Setting one turns a vague worry into a number you can plan around.
Nadia Brandt
· 3 min read
$150k
Planning
If most of your year is earned in a few weeks, the slow months are where cash trouble starts. Plan the trough first and the peak looks after itself.
Priya Sethi
· 3 min read
70%
Decisions
A hire is usually the largest recurring commitment a small business makes. Here is how to check it against your cash before you sign the offer letter.
Nadia Brandt
· 3 min read
$89k
Cash terms, in plain words.
The six words that come up in every article, defined the way we would explain them across a kitchen table.
Runway
How many months your cash lasts at today’s rate of spending, after the income you expect. Tarn measures it every morning from real balances.
Cash floor
The lowest balance you agree to keep. It covers a few weeks of fixed costs, money held for others such as sales tax, and one bad surprise.
Burn
How much more cash leaves than arrives in a typical month. A business can be profitable on paper and still burn cash while it waits to be paid.
13-week forecast
A week-by-week view of cash for the next quarter, built from expected receipts and known payments. The standard short-range forecast lenders ask for.
Days sales outstanding
The average number of days between sending an invoice and being paid. Every day it falls is cash you hold sooner.
Scenario
A copy of your forecast with one change applied, such as a hire or a late client, so you can see its effect before you commit.
