Balance Forecast & Runway Estimation

Once you have up-to-date financial data in WiseCash, you get these useful financial forecasts and metrics:

  • A day-by-day bank account balance projection for the upcoming year.
  • Your estimated runway (number of days your business can survive given planned transactions).
  • Your crash date, day when your bank account will reach zero.

Here are the steps to get that projection for your business:

Understand how the cash-flow forecast works

The forecast starts from the bank account balance you provide. It then adds up the transactions not yet marked as paid, over time, and charts the estimated future bank account balance.

Represented as a table, this would look like this:

Date Transaction Amount Status Delta Projected bank account balance
today         $25,000
in 2 days Client Invoice #1 $5,000 to be paid +$5,000 $30,000
in 3 days Client Invoice #2 $7,500 already paid $0 $30,000
in 5 days Quarterly Taxes -$9,000 to be paid -$9,000 $21,000

Update your cash-flow forecasting data

To make sure your forecasting data is in sync with your bank account state:

  • Make sure to check your latest bank report in order to update your forecast data.
  • Mark as paid all transactions which occurred on your bank report, to avoid double-counting.

Go to the burn-chart and provide your current bank account balance

Click on the Forecasting icon, then click on Set your bank account balance:

The chart will update in real-time as you type, giving you the opportunity to estimate crash dates with various bank account balances. This is useful to quickly simulate the impact of moving money from an account to another, or to take savings into account.

Forecast your runway and bank account balance

You can move the mouse to estimate your upcoming bank account balance:

This forecasting has many uses, including:

  • Negotiating contracts.
  • Planning unbillable time.
  • Making strategic orientation decisions.
  • Anticipating withdrawal from bank accounts.
  • Backing-up a loan with your bank.
  • Doing a break-even analysis.
  • And many more.

Contact us if you need any help to leverage this chart!