Cash flow forecasting for tech and software firms
Hiring is the biggest decision you make, and runway is the number everyone asks about. Cadence shows both from your real invoices and bills, and lets you test a decision before you make it.
Where the cash gets tight
Software, SaaS, digital product and technology services businesses
- Each hire is a long-term commitment that changes the monthly burn.
- Subscriptions and contractor costs build up quietly.
- Revenue timing is rarely tidy: annual contracts, usage billing and project work arrive on different schedules.
- Investors, lenders and the board ask how long the cash will last.
How Cadence helps
Test a hire first
A scenario adds the cost of a hire from their start date and shows the effect on cash week by week, next to the plan without them.
Every plan
Recurring costs projected forward
Subscriptions, contractors and other regular costs marked as recurring appear in every future period until their end date.
Every plan
A likely range, not a single line
Professional adds a range around the forecast from how accurate past forecasts have been, so you can see how far the number could move.
Professional
Plain-English answers
Ask Scout, the AI assistant, questions such as “when do we drop below our buffer?” and get an answer from your own figures.
Professional
Several companies together
Run up to the plan’s limit of companies as a group with one combined cash view, converted across currencies.
Enterprise
What one hire does to runway
A worked example.
- Cash in the bank: £180,000. Net monthly burn (money out less money in): £15,000. Runway: 12 months.
- A developer costing £6,500 a month in total joins on 1 January.
- Burn rises to £21,500 a month, and runway falls to a little over 8 months (£180,000 ÷ £21,500).
- In Cadence this is a scenario: switch it on to see the forecast with the hire, off to see it without, before anyone signs a contract.
Illustrative figures. Your hire’s total cost includes employer National Insurance and pension on top of salary.
See your own next 13 weeks.
Connect Xero or import a spreadsheet, and the forecast builds itself. No card needed.