Why am I seeing a Negative Cash Flow Warning?
Sunrise users who’ve connected at least one bank account may receive an alert that they are encountering a Negative Cash Flow. This alert comes when a business's cash flow for that period is net negative.
What does the Negative Cash Flow Warning mean?
This alert means that the business's expenses (outflows) are exceeding the revenue (inflows) resulting in a negative cash value for the period.
This reminder is used primarily to alert our customers so you can take action. You may look to infuse more capital into your business or suspend expenses (where possible). Additionally, some of our clients might elect to send customers a reminder to pay an invoice, or potentially attaching late fee payments to overdue invoices.
Of course, even the most successful small business owners know there may be times when their company may need to spend more to make more. Be on the lookout if you repeatedly see this warning month after month. It may be a sign of declining business health.
What does it not mean?
It does not mean your company has no cash on hand or reserves. For example, if you have revenue outside of what you've imported to Sunrise, we would not be able to include that capital until you you have added it. Making sure you have linked each account can help address this issue.
Additionally, the warning only applies to the specific time period. Depending on the nature of your business's cash flow, you may be anticipating revenue occurring that will raise your inflows above your outflows.