Module Summary
The Innovation — the essence of it, in two minutes.
"Give us your P&L and your Balance Sheet — we give you the Cash Flow Statement, the solvency analysis, and the forward forecast you need to run the business with confidence." Every accountant already produces the first two reports. Nobody automatically produces the third — the one that actually tells an owner whether the business can survive.
How it works
Import the P&L and Balance Sheet → BusinessSolvency derives the integrated Cash Flow Statement automatically from the movements between periods (receivables, inventory, creditors, depreciation, beginning cash) → applies the solvency indices → produces review-ready reporting. No manual entry, no accounting training assumed.
Four layers of innovation
Why this goes further than standard accounting
A standard forecast asks what revenue covers costs and produces a profit. The Sustainable Cashflow Formula asks what cash is needed to meet every commitment — operating costs, loan repayments, drawings, tax, and reserves. The cashflow breakeven is almost always higher than the accounting breakeven — see The Formula for the full mechanism.
Why no one has built this before
Xero, MYOB, and QuickBooks were built to serve compliance reporting, not solvency monitoring. Large firms provide analysis on request — retrospective, expensive, and not continuous. Nobody has automated this for the whole market.
Where it stands — 2026
The auto-generated Cash Flow Statement is proven in alpha testing. Remaining priorities: completing equity/reserve/capital repayment provisions in the forecast, building structured Xero import, and finishing solvency report output.
- 1What every accountant produces — and what every business owner is missing.
- 2The mathematics that accountants know — automated for every business owner.
- 3Each layer builds on the last. Together they are unprecedented.
- 4Where BusinessSolvency goes beyond anything the accounting profession offers.
- 5The accounting industry was built to serve compliance — not business owners.
- 6Proven in alpha. Built on a clear roadmap.
The Core Innovation
What every accountant produces — and what every business owner is missing.
Every Australian business produces two financial reports as a matter of course — a Profit and Loss Statement and a Balance Sheet. These are the standard outputs of every accounting system, every set of accounts, every Xero or MYOB report. They have been produced this way for decades.
What has never been systematically produced for business owners — sole traders, partners, and company directors alike — is a properly integrated Cash Flow Statement derived from those two reports, combined with the solvency indices and forward projections that show whether the business can genuinely keep trading.
BusinessSolvency does exactly that. Import the P&L and Balance Sheet and BusinessSolvency generates the integrated three-statement analysis automatically, applies the solvency indices, and produces reporting the owner can act on.
The BusinessSolvency Proposition
"Give us your P&L and your Balance Sheet — we give you the Cash Flow Statement, the solvency analysis, and the forward forecast you need to run your business with confidence and stay ahead of the risk."
How It Works
The mathematics that accountants know — automated for every business owner.
The relationship between the three financial statements is mathematically precise. A correctly prepared Cash Flow Statement can always be derived from the movements between two consecutive Balance Sheets, combined with the P&L for the same period. This is standard accounting theory — but it has never been automated and delivered directly to business owners as a day-to-day tool.
BusinessSolvency calculates cash movements automatically from balance sheet movements between periods — receivables, inventory, creditors, depreciation, beginning cash — and chains them correctly across multiple years. No manual entry by the owner is required. No accounting training is assumed. The platform does the work.
Four Layers of Innovation
Each layer builds on the last. Together they are unprecedented.
Derives the integrated Cash Flow Statement from P&L and Balance Sheet data automatically — correcting the gap that exists in most professionally prepared accounts and eliminating the need for manual entry.
Applies creditor payment obligation tests, working capital ratios, debt service coverage, and RG 217-aligned metrics where relevant, automatically from the data entered — producing a single clear solvency score.
Projects forward using the eight-component Sustainable Cashflow Formula — cash in must equal or exceed all cash obligations including capital repayments, drawings, tax, and reserve provisions. The accounting breakeven is not enough.
Produces structured solvency reports — giving every business owner, of any structure, an independent, documented audit trail of continuous monitoring.
The Forecast Challenge
Where BusinessSolvency goes beyond anything the accounting profession offers.
The historical three-statement integration is powerful. But the real innovation — and the real protection for the business owner — lies in the forward forecast. This is where BusinessSolvency separates itself entirely from standard accounting practice.
What standard accounting forecasts miss — and why it matters
A standard profit forecast asks: what revenue do we need to cover our operating expenses and produce a target profit? It is built on profit logic.
The Sustainable Cashflow Formula asks a different and far more important question: what cash does this business need to generate in this period to pay every cash commitment — operating costs, capital loan repayments, personal drawings, tax obligations, and the reserve needed to protect against the next crisis?
The cash flow breakeven point is almost always substantially higher than the accounting profit breakeven point. The difference between those two numbers is the danger zone — where profitable businesses become insolvent. This is the zone that destroys businesses, whoever's name is on the debt.
Why No One Has Done This Before
The accounting industry was built to serve compliance — not business owners.
The accounting software industry evolved to serve the compliance culture — profit reporting for taxation authorities and true and fair reporting for auditors and lenders. Xero, MYOB, and QuickBooks are brilliantly designed for that purpose. They were never designed to give business owners independent, continuous solvency monitoring.
Large accounting firms provide analysis on request — but it is retrospective, expensive, and delivered in formats designed for accountants rather than owners. There is no standardised analytical framework. There is no continuous monitoring. There is no independent audit trail an owner can point to.
BusinessSolvency fills that gap — for every business owner, of every structure, at a price point accessible to the entire market.
Development Status — 2026
Proven in alpha. Built on a clear roadmap.
The auto-generated Cash Flow Statement from P&L and Balance Sheet data has been proven in alpha testing with demonstration business data. The platform correctly calculates depreciation, receivables movements, inventory movements, accounts payable movements, and beginning cash balances automatically from balance sheet data — with no manual cash flow entry required from the business owner.
Alpha development status — May 2026
Outstanding development priorities in sequence: completing equity, reserve and capital repayment provisions in the forecast module; building the structured import function for Xero and standard accounting formats; and developing the solvency reporting output aligned to RG 217 principles where relevant.
Each of these builds directly on the proven foundation. The architecture is sound. The innovation is real. The market is waiting.