Why a profitable business can still run out of cash
Startup Costs | Blank working worksheet | September 6, 2026
https://startup-costs.com/guides/profit-and-cash/

Result to produce: A profit-to-cash bridge and a clearly defined test for recovering the initial investment.

Business and format:
Address or service area:
Prepared by:
Date:

BEFORE YOU START
Use a profit statement and opening and closing balances for receivables, inventory and operating payables. Also collect equipment payments and the principal portion of debt repayments for the same period.

CALCULATION INPUTS
Net profit after accrued interest and tax (USD):
Depreciation already charged in profit (USD):
Increase in customer receivables (USD):
Increase in inventory (USD):
Increase in operating payables (USD):
Equipment cash payments (USD):
Loan principal repaid (USD):

Use the guide calculator for formulas and results. Enter your own values and retain the evidence for each assumption.

DECISION RECORD
1. Profit starting line
Period and whether the figure is EBIT or net profit
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

2. Working-capital changes
Opening and closing receivables, inventory and payables
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

3. Noncash adjustments
Depreciation and any other relevant noncash items
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

4. Investment and financing
Equipment payments, principal, new funds and withdrawals
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

5. Reconciliation
Calculated closing cash compared with actual unrestricted cash
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

6. Recovery definition
Owner or project cash, initial investment and first zero crossing
Finding or value:
Evidence, scope and date:
Status (Unverified / Assumed / Supported / Needs review):
Next action, person and date:

DECISION RULES
If: Profit is positive but operating cash is negative
Action: Inspect collection delays and inventory before adding more sales on the same terms.

If: The bridge does not reconcile to the cash balance
Action: Find the omitted movement before using it to set withdrawals.

If: Cash recovery is outside the forecast
Action: State that it has not been reached and test the inputs that most affect it.

YOUR DECISION
Next commitment:
Conditions still to resolve:
Decision and reason:
Next review date:

Sources and background:
SBA: managing a business: https://www.sba.gov/counseling/manage-your-business/
IRS: business recordkeeping: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping

This is a blank personal planning worksheet. Its completion is not an approval, a market estimate or a completed state research record.
The examples and calculator defaults on the guide are authored illustrations. Keep your own evidence and limitations with any result.
Financial information supports planning and education and is not personalized financial, investment, tax or legal advice. Results do not guarantee costs, revenue, profit or financing.