TRUE CASH POSITION
Bank balance is not runway.
Most companies track what is in the bank. RunwayCal computes what is actually available after obligations, liabilities, and committed spend. The difference changes everything.
- Tax obligations
- Deferred revenue
- Committed payroll
- Vendor commitments
Your bank account is lying to you.
$680,000 in the bank feels comfortable. But subtract $74,000 in upcoming tax obligations, $122,000 in deferred revenue you have not earned yet, and $98,000 in committed payroll. Your true cash is $386,000. Your real runway is 5.2 months, not 12.
What happens when you trust the bank balance
Hire based on bank balance, run out of cash 6 months early
Report runway to board that does not account for obligations
Miss fundraising window because apparent runway looked comfortable
The difference changes everything.
What Your Bank Shows
$680,000
Bank balance
~12 months runway
What Is Actually Available
Bank balance$680,000
Tax obligations-$74,000
Deferred revenue-$122,000
Committed payroll-$98,000
True cash position$386,000
5.2 months runway
Related terms:True Cash Position·Runway·Burn Rate·Deferred Revenue