Cash Flow Health Checklist

A quick diagnostic to catch a cash crunch before it catches you.

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Current Position

Know your exact cash balance today
Know your average monthly burn rate
Calculate your cash runway (cash ÷ monthly burn)

Inflows

Review days sales outstanding (how long invoices take to get paid)
Identify your 3 largest customers by revenue
Flag any customer more than 30 days past due

Outflows

List all fixed monthly costs
Identify which costs could flex down if needed
Check for any large one-time payments coming up

Early Warning Signs

Cash balance trending down 2+ months in a row
Relying on credit to cover payroll
Customer concentration above 30% from one client

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Frequently Asked Questions

What counts as a healthy cash runway?

There's no universal number, but many small businesses aim for at least 3-6 months of operating expenses in reserve. The right target depends on how predictable your revenue is.

What exactly is customer concentration risk?

It's how dependent you are on one or a few customers. If one client makes up more than 30% of revenue, losing them could seriously damage cash flow — worth actively managing down over time.

How often should I actually run this checklist?

Monthly is a reasonable default for most small businesses. If cash is already tight or unpredictable, checking weekly is safer until things stabilize.

I found a warning sign — what should I do next?

Start by understanding the cause: is it a timing issue, a spending issue, or a revenue issue? The Cash Flow Tracker helps you separate those three so you're fixing the right problem.

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