How To Calculate Runway in Sage 100 | Arithmix
Learn how to calculate runway in Sage 100 with our step-by-step guide. Ensure your business has enough cash flow to sustain operations and make informed financial decisions.
Calculating runway in Sage 100 is an important task for any business owner or financial manager. It helps you determine how long your company can sustain its current operations without running out of cash. In this article, we will explain what runway is, when it is valuable to calculate it, and how to do so in Sage 100.
What Is Runway?
Runway is the amount of time a company can continue operating without running out of cash. It is calculated by dividing the cash balance by the monthly burn rate. The burn rate is the amount of money a company spends each month to cover its expenses, such as salaries, rent, and utilities.
For example, if a company has $100,000 in cash and its monthly burn rate is $10,000, its runway is 10 months. This means that the company can continue operating for 10 months before it runs out of cash.
When Is It Valuable To Calculate Runway?
Calculating runway is valuable for any business, but it is especially important for startups and companies that are experiencing financial difficulties. Startups often have limited funding and need to know how long they can continue operating before they need to raise more capital. Companies that are experiencing financial difficulties need to know how long they can continue operating before they need to make significant changes to their operations.
Calculating runway can also help companies plan for the future. It can help them determine when they need to start looking for new sources of funding or when they need to cut expenses to extend their runway.
How To Calculate Runway In Sage 100
To calculate runway in Sage 100, you will need to gather the following information:
- Cash balance
- Monthly burn rate
Once you have this information, follow these steps:
- Open Sage 100 and navigate to the General Ledger module.
- Select the Cash Management option.
- Enter the cash balance in the Cash Balance field.
- Enter the monthly burn rate in the Monthly Burn Rate field.
- Click the Calculate button to calculate the runway.
The runway will be displayed in the Runway field. You can also view a graph of the runway over time by clicking the Graph button.
It is important to remember that calculating runway is just one part of financial planning. It is important to regularly review your financial statements and make adjustments as needed to ensure the long-term success of your business.
In conclusion, calculating runway in Sage 100 is a valuable tool for any business owner or financial manager. It helps you determine how long your company can sustain its current operations without running out of cash. By following the steps outlined in this article, you can easily calculate your company's runway and use this information to plan for the future.
How Do You Calculate Runway in Sage 100
Sage 100 itself isn’t naturally geared towards letting you calculate complex metrics like Runway. As an alternative, teams typically use products like Arithmix to import data from Sage 100 and build out dashboards.
What is Arithmix?
Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Sage 100, combine it with data from other systems, and create calculations like Runway.
In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.
Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.
Calculating Runway in Arithmix
Calculating metrics like Runway is simple in Arithmix. Once you've created your free account, you’ll be able to import your Sage 100 data, and use it to create natural language formulas for metrics like Runway.
Arithmix is designed to give you the power to build any calculations you want on top of your Sage 100 data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.Use Arithmix free