Question

Cash balance

  • 14 March 2024
  • 5 replies
  • 33 views

We keep a majority of our corporate cash in short-term liquid investments which sit within current assets. Is there a way to change how the reporting formula for Cash balance, Runway, etc is calculated to include “Total Current Assets” from quickbooks?


5 replies

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@Kyle Christensen Not at the moment, how would you want to calculate these?

Current assets is a common metric on any company’s balance sheet and in Quickbooks. It looks like Digits has charts for Total Assets and Total Liabilities, but there should be a way to edit and combine different asset categories to create charts. Most companies these days keep much of their cash in liquid money market funds (which would fall under Current Assets, not Cash) in order to take advantage of high interest rates. So a company’s true cash balance would be Cash + Current Assets.

 

Without the ability to include Current Assets, all of the cash and runway pre-made charts are not useful for us.

Userlevel 5
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Thanks for the feedback, @Kyle Christensen much appreciated. One workaround you could do is to move the market funds and classify as a cash & cash equivalent.

I would but that would unfortunately mess up our Quickbooks and would be incorrect from an accounting perspective. I think the issue is Digits calculates Total Cash as equal to cash in bank accounts, but does not include “Other Current Assets”. It would be great at some point if we were able to define what asset categories we considered to be “Total Cash” from an overall liquidity perspective

Userlevel 5
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Good to know that workaround won’t work for you @Kyle Christensen 

We calculate Total Cash = Bank Accounts + Undeposited Funds 

If you ever want to see one of our cash calculations, you can click on the expand icon in the dashboard to view the underlying calculations.



Will share your idea to define asset categories with the product team when I meet with them soon.

 

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