Financial Modeling for Non-CFOs

Cash vs. Accrual

Revenue is vanity. Cash is oxygen. You can 'book' a $1M deal, but if they pay Net-60, you might run out of cash next month. Always model on a Cash basis for survival.

### The Burn Multiple

How much are you burning to generate $1 of ARR? * < 1x: Efficient Growth * 1-2x: Good * > 3x: Dangerous

VCs look at this metric first. It proves operational discipline.

Scenario Planning

Build 3 cases: 1. **Base Case:** Everything goes according to plan. 2. **Upside Case:** We go viral. 3. **Zombie Case:** Revenue is flat for 12 months. Do we die?

Knowing your 'Zero Date' (when cash runs out) gives you clarity. It tells you when to hire and when to freeze.

Conclusion

Finance isn't math; it's physics. You can't cheat gravity (cash flow).