Finance
Startup burn rate analysis
Understand gross and net burn from monthly spending and revenue. Identify what drives cash usage using figures you supply.
Start with the right context.
Revenue on an invoice is not always cash received. For a cash analysis, identify receipts and payments rather than treating all accounting entries as cash movements. A one-time purchase can distort a single month, so explain unusual items separately.
Prepare a result you can use.
Have your chief calculate gross burn from expenses and net burn after receipts. Compare consecutive months, list the largest changing categories and separate observed changes from forecasts. Ask for a clear table that another person can reproduce.
Review before the next step.
Review whether the revenue and expense definitions match. Positive net burn means cash is being consumed; zero or negative net burn does not justify an invented finite runway. Missing categories should appear as gaps in the analysis.
What to bring to your chief
- Cash operating expenses by month
- Cash revenue for the same months
- Exceptional payments and opening cash
Try this task
Analyse my monthly cash receipts and operating payments. Calculate gross and net burn, compare the months, identify one-off items and explain the biggest drivers. Ask for missing data and label every assumption.
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Common questions
What will I get from this task?
Start with the written draft described in the prompt. Ask for missing facts and review the result before requesting a saved file or further action.
Can this task use my chief’s computer?
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