Illustration by Dean Krueger
Categories
Accrued Dictionary

Cash Runway

By PRETTY BOOKS ON February 9, 2021
Metaphorical definitions of complex accounting terms.

The accounting language is filled with highly technical words and phrases that describe the highly technical job functions of an accountant. The ACCRUED DICTIONARY is a collection of common terms accountants use broken down into easy-to-understand metaphors, jokes, and whimsy. The dictionary cuts through the technical jargon and gives you a metaphorical perspective at what these words mean

Cash Runway

Noun. [kash•ruhn-wey]
  1. Accrued Dictionary definition: An earthquake detection system that monitors seismic activity within the business to predict any upcoming earthquakes. Owners can use the detection system to take action and prepare for any predicted earthquakes in the immediate future. While the tool might be absolutely necessary for businesses in a seismic zone, it’s an important everyday tool to have just in case.

     //There’s an earthquake reported on my cash runway, but I have enough to time to make sales and avoid it. 

  1. Textbook definition: The amount of time you can continue to operate if you don’t have any money coming in. Let’s say you have $60,000 in the bank and it costs you $10,000 just to operate, you have 6 months before it will run out.

     //Your cash runway says that without any new sales, you will be able to continue to operate for one year.

Share this article

The information provided in this post is for general informational and educational purposes only and is not a substitute for professional advice. Consult your financial, business, or tax advisor with respect to matters referenced in this post. Pretty Books assumes no liability for actions taken in reliance upon this information.

More from Pretty Books

Here's Why

Here’s Why Weekly Cash Flow Reviews Help You Gain Clarity In Your Business

You’re always a little uncertain when it comes to cash. Can you hire a new employee? Purchase that new technology? Every time you hit that “submit” button on payroll, you’re nervous- will your bank account be able to handle it? Your understanding of your cash situation is foggy. Here’s the deal, you need to establish a weekly cash flow sync up.

Checklist

The Detailed New Hire Checklist

The Detailed New Hire Checklist Hiring is exciting. It means your business is growing and you’re ready to add a new member to the team. It also means taking care of some paperwork. There are a list of things you’ll need to get together to meet HR and the government’s requirements, as well as a […]

Day in the Life

Catch-Up Day- A Day in the Life of an Accountant

Today is Catch-Up Day. These are days where the high tide of work accountants usually face is out, leaving them with time to clean up the beach and finish projects they are usually too busy to take care of. Accountants use this time to file paperwork, catch up on their to-do lists, research, and regroup with their team without the threat of a looming deadline.

Checklist

The WA State Checklist

Washington State Tax Checklist Washington State has three specific categories of taxes: state, city, and county. In order to be better prepared, your checklist is going to include taxes within the city and county, as well as the state excise tax. What is State Excise tax? These taxes are usually imposed on the services and […]

Search

Hello, We Are Pretty Books

We're detail-driven, innovation-inspired number enthusiasts. We thrive on helping our clients set up, manage, and oversee financial data, processes and systems. Our modern accounting services include bookkeeping, payroll, financial consulting and more.

Inquire
Sign up for our newsletter.