Working capital mechanics
Starting liquidity
Opening Cash Balance
Your opening balance reflects true reconciled cash available in operating accounts on day one. Uncollected customer billings and pledged reserves stay excluded until settlement clears.
Collections timing
Cash Received
Cash received accounts strictly for cleared bank deposits within the active cycle. Net revenue recorded on accrual invoices provides no liquidity until client funds reach your ledger.
Operating outflows
Cash Paid Disbursements
Every physical outflow—vendor disbursements, payroll runs, equipment leases, and tax payments—reduces immediate runway. Timing outflows against receipt schedules prevents operational deficits.
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