3:I[5613,[],""] 5:I[1778,[],""] 4:["slug","what-is-cash-burn-rate","d"] 0:["zpUtElipgPXf-4E9Ttz3x",[[["",{"children":["resources",{"children":["financial-forecast",{"children":[["slug","what-is-cash-burn-rate","d"],{"children":["__PAGE__?{\"slug\":\"what-is-cash-burn-rate\"}",{}]}]}]}]},"$undefined","$undefined",true],["",{"children":["resources",{"children":["financial-forecast",{"children":[["slug","what-is-cash-burn-rate","d"],{"children":["__PAGE__",{},["$L1","$L2",null]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children","financial-forecast","children","$4","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/2e6661b0417b461e.css","precedence":"next","crossOrigin":""}]]}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children","financial-forecast","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},[null,["$","html",null,{"lang":"en","children":[["$","head",null,{"children":[["$","meta",null,{"name":"robots","content":"index, follow, max-image-preview:large, max-snippet:-1, max-video-preview:-1"}],["$","link",null,{"rel":"icon","href":"/images/website-icon.svg"}]]}],["$","body",null,{"itemScope":true,"itemType":"https://schema.org/SoftwareApplication","className":"c455","children":[["$","meta",null,{"itemProp":"applicationCategory","content":"Business Planning Service"}],["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$L6","notFoundStyles":[],"styles":null}]]}]]}],null]],[[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/f5c18260de885e3c.css","precedence":"next","crossOrigin":""}]],"$L7"]]]] 6:E{"digest":"NEXT_REDIRECT;replace;/;307;"} 8:I[4699,["6081","static/chunks/6081-024259f4f6c69551.js?v1758199414174","3842","static/chunks/3842-fc747814cdab0121.js?v1758199414174","6142","static/chunks/6142-fe3b722656e566bf.js?v1758199414174","4181","static/chunks/app/resources/financial-forecast/%5Bslug%5D/page-f7dccd0e5de8435a.js?v1758199414174"],""] 9:T60bd,{"id":"cG9zdDoyMzgy","title":"What is a Cash Burn Rate & How can it be Calculated?","content":"\n

Understanding your cash burn rate is essential for managing the financial health of your business. This metric, especially critical for startups and growth-phase companies, measures how quickly you spend your cash reserves. In this article, we will delve into the details of this vital metric, its importance, and how to calculate it effectively.

\n\n\n\n

What is the Cash Burn Rate?

\n\n\n\n

It is the rate at which a company uses up its cash reserves. It is a measure of negative cash flow, typically recorded as a monthly rate. Knowing your cash burn rate is crucial as it indicates how long your business can continue operating before needing additional funding. For example, if your monthly rate is $50,000, your business is spending $50,000 more than it earns each month.

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Why Monitor Cash Burn Rate?

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Monitoring your cash burn rate helps assess your business’s financial sustainability. It provides insights into how quickly you are depleting your cash reserves and whether you are moving toward profitability or facing potential cash flow issues. A controlled rate ensures that your business can continue to operate and grow without the immediate risk of running out of cash.

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Implications for Startups

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For startups, this is a critical metric as they often operate at a loss during the initial stages. Understanding and managing this rate is vital to ensure that the business can reach profitability before the cash reserves are exhausted. Investors also closely scrutinize this metric to gauge the startup’s financial health and longevity.

\n\n\n\n

Calculating Cash Burn Rate

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Gross and Net Burn Rate

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You need to look at your cash flow statement to calculate your cash burn rate. There are two main types of burn rates: gross burn rate and net burn rate.

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Gross Burn Rate

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This is the total amount of operating expenses a business incurs in a month. It includes all monthly outflows such as salaries, rent, and utilities.

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It can be calculated with the following formula:

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Gross Burn Rate = Total Monthly Operating Expenses

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Net Burn Rate

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This reflects the actual monthly loss by subtracting revenue from the gross burn rate.

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Here is how to calculate it:

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Net Burn Rate = (Revenue – Operating Expenses)

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For example, if your monthly operating expenses are $100,000 and your revenue is $70,000, your net burn rate would be $30,000.

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Step-by-Step Calculation

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Suppose your business starts the month with $200,000 in the bank and ends with $150,000. The difference, $50,000, is your cash burn rate for that month. If you want to calculate the monthly burn rate over a quarter, you would sum up the beginning and ending cash balances for each month, find the difference, and divide by the number of months.

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Monthly Burn Rate

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(Cash Balance at Beginning of Period – Cash Balance at End of Period) / Number of Months

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For example, if your starting cash balance in January is $300,000, and it decreases to $200,000 by the end of March, your quarterly burn rate is $100,000, and the monthly burn rate is approximately $33,333.

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Strategies to Reduce Cash Burn Rate

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    \n
  1. Increase Revenue: Boosting sales or finding new revenue streams can help offset your operating expenses.
  2. \n\n\n\n
  3. Cut Costs: Reduce non-essential expenses, streamline operations, and renegotiate terms with suppliers.
  4. \n\n\n\n
  5. Optimize Payroll: Consider deferring new hires, laying off non-essential staff, or implementing salary cuts if necessary.
  6. \n\n\n\n
  7. Improve Cash Collection: Bill customers promptly and follow up on late payments to improve cash inflows.
  8. \n\n\n\n
  9. Delay Payments: Negotiate extended payment terms with your suppliers to hold onto your cash longer.
  10. \n
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Monitoring and Adjusting

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Regularly reviewing your cash burn rate and making necessary adjustments is essential for maintaining financial health. Use forecasting tools to predict future cash flows and plan for various scenarios. This proactive approach helps in making informed decisions and avoiding potential cash crises.

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Understanding this vital metric and how to calculate it is crucial for any business, especially startups. By monitoring it, you can ensure that your business remains financially sustainable and is well-prepared to handle growth or downturns.

\n\n\n\n

Ready to take control of your business finances? Modeliks offers a suite of tools designed to help you monitor, and forecast future cash flows, and make informed financial decisions. Our intuitive platform lets you easily track your financial health and optimize your business strategy. Sign up for Modeliks today and gain the insights you need to drive your business forward. Start for Free and see the difference!

\n","slug":"what-is-cash-burn-rate","date":"2024-06-17T13:16:35","categories":{"nodes":[{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoyMzgz","sourceUrl":"/images/cms/What-is-Cash-Burn-Rate-and-How-to-Calculate-it.jpg","altText":"Modeliks Guide: What is Cash Burn Rate and its calculation for effective financial management."}},"seo":{"metaDesc":"Learn what cash burn rate means for your business and how to calculate it to maintain financial health. Essential for startups."},"modified":"2024-06-17T13:16:36","related":[{"id":"cG9zdDoxMTU0MQ==","title":"How Accountants Can Offer High-Margin Advisory Services","content":"\n

Why Advisory Services Matter for Accounting Firms

\n\n\n\n

The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.

\n\n\n\n

According to a CPA.com survey:

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This means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.

\n\n\n\n
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The Challenge: Scaling Advisory Without Burning Out

\n\n\n\n

For most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows

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The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.

\n\n\n\n
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The Solution: Modeliks for Advisory Services

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Modeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.

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Here’s how it works in practice:

\n\n\n\n

1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.

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2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.

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3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.

\n\n\n\n
\n\n\n\n

The Impact for Accounting Firms

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Firms using Modeliks see:
New revenue streams by offering planning & reporting as premium packages
Higher client retention thanks to consistent value beyond compliance
No extra headcount required, since processes are automated
Improved positioning as trusted advisors, not just bookkeepers

\n\n\n\n

As one accountant put it:

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\n

“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”

\n
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Why Now Is the Time

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Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.

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If you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.

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\n\n\n\n

Next Steps

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📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.

\n\n\n\n

📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"high-margin-advisory-services-accountants","date":"2025-09-02T08:30:06","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=UlQEwnWOdKQ"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTU0Mg==","sourceUrl":"/images/cms/Screenshot-2025-09-02-at-10.27.59.png","altText":"How to offer Advisory Services at High Margin?"}},"seo":{"metaDesc":"Learn how accounting firms can add high-margin advisory services without extra headcount. Discover how Modeliks helps accountants deliver financial planning, reporting, and dashboards that clients will pay more for."},"modified":"2025-09-02T08:30:10","related":null},{"id":"cG9zdDoxMTQ4Mw==","title":"How to Manage & Grow Your Professional Services Business: A Strategic Playbook","content":"\n

Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:

\n\n\n\n\n\n\n\n

The truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.

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That’s where having a structured financial planning and reporting system becomes a game-changer.

\n\n\n\n
\n\n\n\n

Who is This Playbook For?

\n\n\n\n

This strategic framework is designed for:

\n\n\n\n\n\n\n\n

If you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.

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\n\n\n\n

How to Grow Profitability in Professional Services

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Professional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:

\n\n\n\n

1. Plan by Project (Not Just Company-Level)

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Each project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.

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2. Track Actuals vs. Plan

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It’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.

\n\n\n\n

3. Build Scenarios

\n\n\n\n

What happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.

\n\n\n\n

4. Monitor Utilization & Capacity

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Employee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.

\n\n\n\n
\n\n\n\n

How Modeliks Helps

\n\n\n\n

At Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.

\n\n\n\n

With Modeliks, you can:

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Why This Matters Now

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Most firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.

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The earlier you set up a scalable framework, the faster you can:

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\n\n\n\n

Key Takeaway

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Growing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.

\n\n\n\n

That’s what this playbook is about — and why we built Modeliks.

\n\n\n\n

👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.

\n\n\n\n

📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"financial-planning-for-professional-services","date":"2025-09-01T11:47:08","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=E87pBDPZzPc"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTQ4NA==","sourceUrl":"/images/cms/Screenshot-2025-09-01-at-13.39.02.png","altText":"Financial planning for professional services"}},"seo":{"metaDesc":"Discover how to manage and grow your professional services firm with project-based financial planning, reporting, and forecasting strategies."},"modified":"2025-09-01T11:47:11","related":null},{"id":"cG9zdDoxMDQyMA==","title":"Modeliks 2.0 is Live!","content":"\n

Today we released a massive new update of Modeliks.  A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.  

\n\n\n\n

We listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:

\n\n\n\n
    \n
  1. Multi dimensional planning and reporting. This means that you can plan and track performance by organizational unit, whether that is business units, departments, geography, stores, projects. However your company is structured, you can have clear targets and track performance across your whole organization.
  2. \n\n\n\n
  3. Consolidation: if you plan on a business unit level, Modeliks will consolidate your financial plans upwords.
  4. \n\n\n\n
  5. Allocations: allocate costs from the head office down to the operating units. Why? Some costs are incurred in the head office, or regional offices, but should be allocated down to the operating units, in order to get a correct picture of profitability across the organization.
  6. \n\n\n\n
  7. Quickbooks integration. Connect Modeliks to your Quickbooks and have your planning and monthly reporting automated, error free and done in minutes.
  8. \n\n\n\n
  9. Account grouping. Group several accounts into one group account. For example, you can create a Utilities group account and make your Energy, heating, phone, internet, water accounts part of the utilities group. Why? Because when you plan, you don’t want to plan on every single small account that you have in your accounting system. It is too tedious and messy. So, group them logically, plan on groups, and make planning and reporting easy and useful.
  10. \n\n\n\n
  11. Initiative planning and evaluation. You have a new initiative in mind for your business? Create a business case and see how it will impact your business. If the numbers say it’s good, keep it. If not, drop it.  
  12. \n\n\n\n
  13. Monthly forecasting. Now you can forecast up to 3 years on monthly basis.
  14. \n\n\n\n
  15. Lastly. Speed. Modeliks is now 10 times faster than before.   
  16. \n
\n\n\n\n

And there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.

\n\n\n\n

Let’s recap. Now you can:

\n\n\n\n
    \n
  1. Build driver based financial models for any business
  2. \n\n\n\n
  3. Do it by department, business unit, geography, stores, projects
  4. \n\n\n\n
  5. Run scenarios and evaluate new initiatives
  6. \n\n\n\n
  7. Track actual performance vs budget, on every level in your organization. Especially easy with the Quickbooks integration
  8. \n\n\n\n
  9. Automate monthly investor and management reporting
  10. \n\n\n\n
  11. And write professional and detailed business plans with the help of our AI assistant.
  12. \n
\n\n\n\n

Enjoy Modeliks 2.0! We know we are!

\n\n\n\n

Author:
Modeliks Team

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