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You want the Cash Balance to be dynamic. Hard plugging something like that will get you in a lot of trouble as you start making changes.
The Cash Flow Statement will drive the Cash Balance on the Balance Sheet. Let the changes in Working Capital on the Balance Sheet flow into the Cash Flow Statement. Then use the Cash at the End of Period (last line of the Cash Flow Statement) to flow into Cash on Balance Sheet.
We have free financial models that you can download on our Financial Modeling page, and also have some helpful how to’s when it comes to projections on our startup financial projections Q&A page. Basically, when doing projections for startups, cash is king, so you’ll want to make sure you understand not only the timing of your expenses and revenues, but also the timing of your cash collections. Getting that cash burn rate projected correctly is very important.
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