Scenario: You're Burning Cash Faster Than Expected

The Situation

You open AskBiz on a Monday morning and notice that your Daily Net Burn figure is significantly higher than it was last week. Your cash runway has dropped by two months compared to last month. Something has changed, but you are not sure what. This is a common and manageable situation — the key is to diagnose it methodically rather than reacting with panic cuts that might damage the business.

Step 1 — Open the Burn Rate Drill-Down

On the Cash Flow tab, locate the Daily Net Gain/Burn card. Click or tap the card to open the drill-down panel. Inside, you will see a breakdown of your burn by cost category — fixed costs versus variable costs, and the top categories by spend. Look for any category that has increased notably compared to prior periods. Common culprits for unexpected burn increases include: a software subscription that moved from monthly to annual and was charged in full, a supplier invoice that arrived early, payroll that processed on an unusual date, or a new cost that was added to variable expenses but not factored into your mental model of burn.

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Step 2 — Cross-Check in the Expenses Tab

Once you have a suspect category from the drill-down, open the Expenses tab. Filter by this month and sort by the category that looked elevated. Look for the specific expense entries driving the increase. Click on any entry to see the full detail: merchant name, date, amount, and category. If the expense is correctly categorised and genuinely new, you now know the cause. If the expense looks miscategorised — for example, an annual insurance renewal incorrectly logged under Advertising — correct the category and recheck the burn card. Miscategorisation is a surprisingly common cause of apparent burn spikes.

Step 3 — Assess the Severity

Once you know the cause, assess whether it is a one-time spike or an ongoing change. A one-time annual payment this month means next month burn should return to normal — no action needed beyond noting it. A genuine ongoing increase (a new salary, a higher supplier rate, a new lease commitment) requires a response. Check the Cash Runway card: has runway dropped below your comfort threshold? If runway is still above nine months, you have time to plan a measured response. If it has dropped below six months, action is more urgent.

Step 4 — Use Ask AI to Get Reduction Options

With the cause identified, tap the Ask AI button on the Daily Net Gain/Burn card. In the prompt field, describe what you found: My burn rate has increased because of a higher supplier cost. Runway is now 7 months. What are my options to reduce burn while maintaining operations? AskBiz AI will analyse your cost profile and revenue data to suggest specific, ranked actions. Common recommendations include negotiating a volume discount with the high-cost supplier, pausing or reducing a lower-priority variable cost to offset the increase, or setting a revenue target for the next 30 days that would bring net burn back to previous levels. Implement the highest-impact action first and monitor the burn card over the following week to confirm the intervention is working.