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Insights · 4 min read
Cash planning is not the same as financial modeling
A five-tab model tells a story. A cash plan tells you what to do next month.
The distinction
A financial model projects the business — pricing, growth, headcount, unit economics. It is a decision aid for direction.
A cash plan looks at the next 8 to 13 weeks. It combines receivables reality, payables timing, and confirmed inflows and outflows. It answers: given what we actually know, what do we do next?
Why both matter
The model tells you what to aim for. The cash plan tells you whether you can afford this month's decision. Operators need both, and Institution treats them as separate deliverables — not one blurred spreadsheet.