Your zero cash date is the estimated date that your business will be out of money at your current burn rate. If your business isn’t regularly cash flow positive, it’s important to track this metric. As you continue to do business and become more operationally efficient, your zero cash date should move further out in time.
To track your business’ zero cash date, take the cash you have on hand and compare it to your overall expenses per month. You’ll divide the available cash by your total monthly expenses to determine how many months you have left and when exactly your zero cash date is.