What is Months of Cash? A measure of small business financial health!

Рет қаралды 984

Күн бұрын

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Ever wondered how long your business could survive without incoming revenue? In this video, we explore the concept of 'Months of Cash' and its significance in measuring your business's financial resilience.
Hannah breaks down the how to calculate this metric and uncovers insights to help you better manage your cash flow.
In this video you will find:
0:00 Finance Metrics
0:34 What is Liquidity?
1:11 Liquidity Metrics
1:35 Months of Cash
2:52 Calculate Months of Cash
3:56 Real-Life Example
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
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Пікірлер: 9

@christopheradkins9724 16 күн бұрын

Your videos have been very helpful. Thank you Hannah.

@byrondrage36 Ай бұрын

I’ve calculated it. I would love to see the video on how to explore more on how many months may be best for my business.

@AromaRetail 2 ай бұрын

I have calculated my monthly cash, and I got work to do :-)

@michelemanalo1637 2 ай бұрын

I calculated our Months of Cash! Thanks!

@scotolivera8207 2 ай бұрын

would love to see a video about mandays and hour calculations to have a an accurate measure for job costing for a service based business

@victorkishter1379 Ай бұрын

Does adding COGS really make sense? If the scenario is no sales then there would be no COGS so I'm a little confused about adding it. Not that it's bad to be conservative.