Performance tracking within Poindexter is designed to keep you on top of your revenue and bank account forecasts as you execute against the assumptions you’ve established in your plan. As each month passes, simply log back in and input the actual results you’ve achieved for one, or both fields, so you can anticipate how your current progress affects your finances moving forward.
Each time your bank account balance is updated Poindexter will adjust the forecasted balance, so you can quickly see, and plan for cash shortfalls well before they happen.
What’s the goal?
The goal is to make sure you don’t run out of money. We want to give you the insight needed to understand what your cash balance will look like into the future by translating how the decisions you’re making today affect your bank account tomorrow.
What to do if balance drops below zero?
If your bank balance drops below zero at any point in the future, you’ll want to develop potential solutions as soon as possible. Generally, there are three things you can do:
- Finance the shortfall (loans, equity investment, sell assets)
- Figure out which activities or costs can be pushed back, or reduced to provide a cash buffer
- Double-down on your most effective revenue generating activities to make up for the difference
There is no one-size-fits-all approach for addressing cash shortages, and viable solutions will depend on your specific circumstances. Ultimately, what you’ll need to do is review all of the things you’ve planned to grow your business, and adjust the assumptions until you arrive at a plan you can work with.
We know this isn’t an ideal way to figure things out, but this is just the beginning of how we’re building Poindexter to help you make intelligent cash management decision. We have some exciting things planned for future releases ;)
To update your actual revenue, simply input the total revenue amount you achieved for the most recent month, and click ‘Save’.
Adjust Bank Balance
To update your bank balance, simply input your actual ending bank balance for the month, and click ‘Save’.
To adjust your inputs for previous months, simply select the appropriate month from the dropdown, update the appropriate values, and click ‘Save’
Cash Burn Rate
Your burn rate represents how much more money you’re spending, or expect to spend, in the current month than you receive from revenue sources.
Identifies how many months of cash you have on hand before your bank balance goes below zero based on the current assumptions in your business plan.
Out of Cash
The month during which you are expected to run out of money.
Lowest Bank Balance
The lowest balance in your bank account over the forecasted period.