Financial Obligations Pyramid
Progress through each level to build a stronger business foundation
Cash-out
Cash-in
History
| Date | Period | Cash-in | Cash-out | Net | Bank Balance | Pyramid Level | Actions |
|---|---|---|---|---|---|---|---|
| No entries yet. Save your first period entry to see history here. | |||||||
AVERAGES
CUMULATIVE NET CASH HEALTH
Running sum of net cash flow
Cash Flow Trends
Forecast Assumptions
Projected Bank Balance
Forecast Table
| Period | Date | Projected Balance |
|---|---|---|
| Update forecast to see projections | ||
Understanding the Three Financial Obligations
Obligation 1: Know Your Costs
Understanding exactly what money flows in and out of your business each period. This foundation is essential before you can achieve break even or profit.
Obligation 2: Break Even
When Cash-in equals Cash-out (Net = $0.00). You're covering all expenses but not generating profit. This is the minimum sustainable position.
Obligation 3: Make a Profit
When Cash-in exceeds Cash-out (Net > $0.00). This surplus allows for growth, savings, and investment in your business.
How to Use This Tool Weekly
- Set your entry date (usually the end of your chosen period)
- Record your actual bank balance
- List all money going out (expenses, payments, etc.)
- List all money coming in (sales, receivables, etc.)
- Review your obligation status and take action accordingly
- Use the forecast tab to plan ahead and anticipate cash needs
- Export your data regularly as a backup
Pro Tip: Consistency is key. Review your financials at the same time each week to build a reliable picture of your cash flow patterns.