Every calculation in these tools is based on a documented, publicly available financial framework. This page lists the source methodology for each tool — with direct links to the original sources.
We do not invent financial frameworks. We implement frameworks that SCORE, the SBA, the accounting profession, and CFOs have already validated and published. Our role is to make those frameworks accessible in a browser, in plain English, to any business owner — without a spreadsheet or an accountant in the room.
The direct method of cash flow forecasting projects cash inflows and outflows directly — starting cash balance + expected receipts − expected payments = ending cash balance. This is the method recommended by SCORE for small business cash flow planning.
The 13-week rolling cash flow model — used by fractional CFOs and in corporate restructuring — applies the same direct method at weekly granularity. It is the gold standard for short-term liquidity management, specifically because it gives enough lead time to act on a projected shortfall.
DSO measures the average number of days it takes a business to collect payment after a credit sale. It is a standard GAAP-consistent metric used by CFOs, SBA lenders, and every major accounting platform.
The DSO Efficiency Ratio (DSO ÷ Payment Terms) provides a normalised measure of collections performance. Industry benchmarks vary; the general thresholds applied in these tools are: 1.0–1.15 = Excellent, 1.15–1.30 = Acceptable, 1.30–1.50 = Poor, above 1.50 = Critical.
These ratios are standard GAAP-consistent measures used by SBA lenders to assess business financial health and creditworthiness. The SBA-aligned benchmarks (current ratio ≥1.5x, quick ratio ≥1.0x, working capital ≥10% of revenue) are the standards applied in these tools.
The five-dimension structure of the assessment tools — cash visibility, receivables management, payables management, reserves, and planning — reflects the categories of financial management practice identified in SCORE's small business financial health guidance and standard CFO practice frameworks.
Specific benchmarks cited in assessment recommendations include SCORE's guideline of 3–6 months of operating expenses as a cash reserve target, and the general SMB finding that under 50% of small businesses maintain a cash flow forecast.