Gross Burn

Gross burn is a financial metric used to measure total cash outflows in a given period, typically a month, without accounting for any cash inflows (revenue or funding). It provides insight into how quickly a company is spending its available cash and is critical for assessing financial sustainability.

In general, gross burn includes the following types of cash expenses:

• Salaries and benefits.

• Rent and utilities.

• Marketing and advertising.

• Technology and infrastructure costs.

• Other operating expenses.

In Rillet, Gross Burn is a calculated total of all journal entries where the following criteria are met:

1. The Journal Entry has a Credit Line item where the GL account is Subtype of

   • Bank, or

   • Credit Card

2. The Journal Entry has a Debit Line Item where the GL Account with a Subtype that is NOT

   1. Accounts Receivable

   2. Other Current Asset

   3. Other Assets

   4. Revenue

   5. Non Operating Income

   6. Customer Deposits

   7. Equity

   8. Bank, or,

   9. Credit Card

If both criteria are met, the transaction will be included in Gross burn calculations.