Cash Burn Rate is the shortfall or surplus of cash that you need to operate the business.
The goal here is to calculate how much cash you will need to survive the crisis. We then use this as a starting point to develop and deploy financial and business strategies to help improve your position.
During normal operating environment, the cash burn rate over a 3 month period is calculated at:
Monthly Burn Rate = (Cash Balance Beginning of period – Cash Balance End of Period) / # of months in period
To help businesses withstand and recover form the economic impacts of COVID-19, new measures and assistance options are in place to support you. The Federal Government are implementing processes to ensure these measures are accessed as soon as possible.
Hear from one of MAUS’Accredited Partners about how these initiatives can be accessed and what it could mean for your business. If you are looking at reaching out to any of the MAUS Accredited Partner Network, you can access the directory via the link below:
Digit, a leading Accounting & Advisory firm in the MAUS community have created this great online calculator to help calculate the forecasted boost to cash flow from the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020
Click below to use the calculator
With many business owners struggling to navigate through these uncertain times, MAUS Business Systems, in conjunction with the Institute of Advisors, have developed a 24 step ‘Business Rescue’ program to help business owners and managers make more informed decisions while evaluating business and personal health.