It’s a scary thought to imagine your startup running out of cash. But knowing how to track and calculate it can help save the early days of your startup life. A cash zero date gives your business a heads up on when your cash balance will reach zero. This allows you to implement a plan for cash flow-positive operations.
One thing to note is sometimes a cash zero date isn’t cause for alarm. Some companies will dip into all their cash reserves for a project that will pay off down the line.