How to forecast runway and months of cash on Starch

Finance & FP&A11 roles covered2 Starch apps

Runway forecasting is the question every operator eventually has to answer: how many months of cash do you have left, and what would change that number? It sounds simple until you actually try to build a reliable model. Revenue is lumpy. Expenses don't fall neatly into categories. Your bookkeeper closes the month two weeks after it ends. And by the time you've stitched together a spreadsheet from bank exports and QuickBooks reports, the numbers are already stale.

What this workflow looks like in practice varies — the inputs, the cadence, and the decisions you're forecasting toward all shift depending on your business model and how fast things are moving. But the core job is the same: know your current burn rate from actual transactions, know your current cash balance from your actual bank accounts, and have a forward projection that updates when either of those change.

On Starch, you end up with a live dashboard that shows net burn, months of runway, and a 24-month forward projection — all pulling from your real bank balance and actual revenue, not last month's export. You can run side-by-side scenarios to see what happens to runway if hiring slows, revenue grows faster, or you delay a raise. The answer to 'when do I need to raise?' is there when you open your laptop in the morning, not after a Friday afternoon spreadsheet session.

Finance & FP&A11 roles covered2 Starch apps
Context

Why it matters

Why this is hard today

A stale runway number leads to bad timing on fundraising, hiring decisions made on false confidence, and board conversations where you're recalculating mid-meeting. Getting this right means you catch a burn acceleration two months early instead of two weeks late. You go into investor conversations with a number you trust. You make the hire or hold the hire based on what's actually in the bank, not what you think is there.

Watch out for

Common pitfalls

Where this usually goes wrong

The most common mistakes: using a single recent month to estimate burn rate, when one slow payroll week or a delayed vendor payment can make that month unrepresentative. Conflating accrual accounting figures from QuickBooks with actual cash movement — your P&L and your bank balance tell different stories, and runway lives in the bank balance. Updating the model manually once a month on a fixed schedule rather than whenever a material event happens. And not separating payroll from other operating expenses, which means you can't quickly see what's fixed versus what's cuttable if you need to extend runway fast.

Toolkit

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