Overview
The Runway card on your RunSmart dashboard gives you a quick, at-a-glance view of how long your business can remain operational with the cash it currently has on hand. It's a powerful tool to help you stay ahead of potential cash flow issues and make informed decisions about spending, investing, or cutting costs.
What Is Runway?
Runway refers to the number of months your business can continue operating before running out of cash—based on your current operational cash balance and your average monthly operating expenses.
Formula:
Runway = Operational Cash ÷ Average Monthly Operating Expenses
Where the Data Comes From
Operational Cash is pulled directly from your connected QuickBooks Online account and includes only liquid cash that can be used for business operations (excluding restricted or reserved funds).
Operating Expenses are calculated using your recent financial history to get a reliable forecast.
Why It Matters
The Runway card helps answer critical questions like:
Can my business survive a slow sales month?
Do I have enough cash to cover upcoming payroll and expenses?
How much time do I have to raise funding or improve profitability?
Monitoring your runway helps you avoid surprises and gives you the insight needed to adjust course proactively.
Tips to Improve Your Runway
Reduce non-essential spending
Improve accounts receivable collection
Delay non-urgent investments
Increase revenue