Standard calculation of break-even is not actually useful at all, because it looks at only the profit and loss account and not all payments leaving the business. Therefore with the normal breakeven calculation, if you make that level of revenue you will still run out of money EEK

In this video, I want to show you how to calculate the cash break-even point - which is the only break-even that really matters in a business. But it’s one that so few people, including accountants, actually calculate

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Time Stamps

00:01 Intro

01:22 What is the definition of a break-even point?

02:09 Why is it better to calculate the cash break-even point for a business?

02:30 How to calculate the cash break-even point in your business?

10:50 What do you need to do when your cash break-even number is much higher than what you can generate in revenue in a month?

11:08 What is a money leak?

Links:

Money Leaks: https://youtu.be/tKDmRApyrww

If you’re struggling to understand the accounting for your business I’d love to help! Reach out to me at yt@annetteandco.co.uk and let me know how I can help!

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