Burn rate analysis

The burn rate report shows how much cash your business is consuming (or generating) each month over a 12-month rolling window. It is especially valuable for startups and growing businesses that need to manage their cash runway.

Accessing the burn rate report

Navigate to Reports > Burn Rate. The report automatically displays the last 12 months of cash movement.

What the report shows

For each month, the chart displays:

• Inflows — Total cash coming in (deposits, customer payments, funding).
• Outflows — Total cash going out (expenses, salaries, supplier payments).
• Net cash movement — The difference between inflows and outflows for that month.

Key metrics

Gross burn

Your total monthly cash outflows, before accounting for any income. This tells you how much your business costs to run.

Net burn

Monthly outflows minus monthly inflows. This is the actual cash your business is consuming:

• Positive net burn — You are spending more than you earn. Your bank balance is shrinking.
• Negative net burn — You are earning more than you spend. Your bank balance is growing (congratulations!).

Runway

How many months your business can continue operating at the current net burn rate before running out of cash:

Runway = Cash Balance / Net Burn

Runway summary

The burn rate page shows a runway summary above the cash flow chart. Three key metrics are displayed for your default currency:

• Cash Balance — Your current total cash across all bank accounts for the selected currency.
• Avg. Monthly Burn — The average net cash flow over the last 6 completed months. This excludes the current (partial) month for accuracy.
• Runway — The estimated number of months remaining at the current burn rate. Color-coded for urgency:
  • Red — 6 months or less remaining.
  • Amber — 12 months or less remaining.
  • A projected zero-cash date is shown when applicable.

If your average net cash flow is positive (you are earning more than you spend), the runway will show an infinity symbol instead of a month count.

Multi-currency

If your business operates in multiple currencies, the burn rate report shows separate charts per currency. Switch between currency tabs to see the breakdown for each.

Important distinctions

The burn rate report uses cash movements from your bank accounts, not accounting figures. This means:

• It reflects actual money in and out, not invoiced amounts.
• It may differ from your income statement, which uses accrual accounting.
• Timing differences (e.g., invoices not yet paid) are not included until the cash actually moves.

Using the burn rate

For founders

• Board reporting — Present cash runway to investors and board members.
• Hiring decisions — Determine whether you can afford new hires at the current burn rate.
• Fundraising timing — Start raising capital when runway drops below 6-9 months.

For accountants

• Cash flow advisory — Use the trend data to advise clients on spending patterns.
• Anomaly detection — Spot months with unusually high outflows that need investigation.