Journal voucher: recording adjustments your auditor can follow
A journal voucher documents a manual accounting entry — what was posted, why, and who approved it. What it must contain, when you need one, and the controls that stop errors.
Burn rate is the simplest number a business can track and the one most avoided. Divided into your cash balance it produces runway — the number of months before a decision is made for you.
Burn rate is how much cash a business consumes in a month. Gross burn is everything going out; net burn is the difference between what goes out and what comes in — the amount by which the bank balance actually falls. Net burn is the one that matters, because it is what shortens the time you have.
The term arrives from funded startups and applies to any business spending more than it collects, which at some point includes most of them. A seasonal shop over a slow quarter, a consultancy between contracts, and a company that has just hired ahead of revenue are all burning cash, and all benefit from knowing at what rate.
Runway under six months changes what decisions are available, and that threshold is worth knowing before you cross it. Raising finance, negotiating terms and hiring all take longer than people expect; at three months of runway most of those doors are already closing. The point of tracking burn is not the number itself but reaching the decision while the options are still open.
Gross burn is total monthly outgoings and tells you the size of the machine you are running. Net burn is outgoings minus receipts and tells you how fast the balance falls. A business with high gross burn and near-zero net burn is large and self-sustaining; the same gross burn with revenue disappearing is an emergency. Watching only net burn hides how exposed you are to a single customer, because their payment is the only thing keeping the net number small.
Ettex Books holds the transactions that make burn visible, and the forward view — what is due to arrive and leave over the coming quarter — belongs in cash flow forecast, which is the same discipline over a longer horizon. The underlying question of whether the price covers the costs at all is break even analysis.
The limits: no bank feed, no automatic balance import, no runway alerting. The monthly calculation is manual, and for a number this consequential that is a smaller problem than it sounds — the person who does it is the person who knows.
Gross burn is total monthly outgoings. Net burn subtracts receipts and is the amount by which your cash balance actually falls. Net burn determines runway; gross burn shows how exposed you are if revenue stops.
Current cash divided by average net monthly burn over the last three months, adjusted for known upcoming payments such as tax bills and annual renewals.
Enough to reach a decision while options remain open. Below six months, raising finance and renegotiating terms get materially harder; below three, most of those routes have already narrowed.
Yes. Any business spending more than it collects is burning cash — a seasonal shop in a slow quarter, a consultancy between contracts, a company that hired ahead of revenue.
A journal voucher documents a manual accounting entry — what was posted, why, and who approved it. What it must contain, when you need one, and the controls that stop errors.
Consolidated accounts present a group as one entity. Who must prepare them, what gets eliminated, and the reconciliations that decide how long it takes.
Fund accounting tracks money by the restrictions attached to it. Who needs it, how restricted funds work, and the reporting it makes possible.