Cash Balance

Measured as

Measure Cash Balance with the same date, unit basis, and accounting or policy definitions used in the rest of your model.

Misused when

• Assuming all cash is available (ignoring restricted or pledged cash).
• Using a static balance without forecasting inflows and outflows.
• Ignoring upcoming debt payments or vendor prepayments that reduce usable cash.

Operator takeaway

• Use cash balance with net burn to estimate runway.
• Separate restricted cash from available operating cash for planning.
• Track cash balance alongside collection timing and upcoming obligations.
• Tie Cash Balance to the same balance-sheet date, scenario, and decision memo you are using elsewhere in the model.
• Document which claims, costs, or adjustments your team includes before comparing numbers across forecasts, covenants, or valuation work.

Next decision

• Quantify the impact with Cash Runway Calculator if you need to turn the definition into an operating assumption.
• Read Cash runway: how to estimate burn, break-even, and survival time if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.