Weekly Cash Position Report
Weekly cash position report distributed Monday morning: cash position, runway, AR/AP aging, key risks. Discussion scheduled if runway threshold crossed.
Before you start
- Bank account access (read-only API or export)
- AR and AP aging available
- Burn-rate model maintained
- Bank balances across all accounts
- Outstanding AR (with aging)
- Outstanding AP and upcoming payments
- Expected payroll and recurring expenses
The steps
- Pull current bank balances — As of Friday close (or report day), pull balances across all operating, savings, and reserve accounts. Note any pending transfers or wires. Confirm reconciliation status — unreconciled accounts produce wrong reports.
- Compute AR collectible in next 30 days — Pull AR aged 0-30, 31-60, 61-90, 90+. Estimate collectible amount per bucket using historical collection rates (e.g., 95% of 0-30, 75% of 31-60). Don't count 90+ as guaranteed.
- Compute AP and payroll due in next 30 days — Pull approved AP with payment due dates. Add upcoming payroll runs. Add recurring expenses (rent, SaaS, utilities). Total = expected outflows.
- Calculate net 30-day cash position — Current cash + expected AR collected - expected AP/payroll/expenses = projected cash at +30 days. Compare to required minimum runway (typically 3-6 months for early-stage). Flag if approaching minimum.
- Calculate runway based on burn rate — Average monthly burn (last 3 months). Cash / burn = months of runway. Note any one-time expenses skewing burn — surface separately. Runway is the headline metric.
- Compile the cash position report — Format: cash position summary (this week vs last week), runway, AR aging, AP coming due, key risks (large invoice past due, client churn affecting AR, etc.). 1 page max.
- Distribute to leadership — Send Monday morning to: CEO, CFO, COO, board treasurer if applicable. For runway under 6 months, schedule a brief discussion same week. Cash visibility prevents surprises.
If it goes wrong
AR estimates assume 100% collection, runway looks better than reality
Use historical collection rates by aging bucket. If you're unsure, lean conservative. Optimistic AR is the most common cash-report failure.
One-time expenses inflate burn rate, making runway look worse
Decompose: structural burn vs one-time. Report both. Leadership needs to see the steady state and the noise separately.
Report not read because format is dense
1-page max. Lead with runway and the trend. Detail in appendix. Time-poor leaders won't read 5-page reports.
All OpenLabor playbooks