Managing cash in an early-stage life science company is not just about budgeting — it’s about survival. Cash flow volatility is often high, driven by grant timing, capital raises, and milestone-based vendor payments. Without careful planning for cash flow volatility, even well-funded startups can find themselves scrambling to make payroll or delaying key R&D activities.
Why Cash Flow Planning Is Vital for Life Science Startups
It starts with accurate, timely accounting — without it, your cash visibility will always be blurred. Once the books are clean and current, a simplified rolling 12-month cash flow forecast updated monthly becomes a powerful planning tool. It helps you model funding scenarios, anticipate large outflows tied to R&D or vendor milestones, and align spending with your scientific and fundraising timelines. This forward-looking view lets you see how far your runway truly extends — and when you’ll need to raise capital — well before it becomes critical.
A fractional CFO service, like we offer at CBIZ, with specialized experience in biotech and life sciences can translate your operational plan into a cash roadmap — bridging the gap between science and finance. With cash visibility and proactive planning, you’re not just reacting to your financial reality, you’re driving it.
About CBIZ and our Life Science Practice
The rapid change often creates a host of challenges and opportunities for life sciences companies, from managing rapid growth to identifying new markets. Our specialized life science teams in outsourced accounting, tax, and audit have in-depth knowledge and cutting-edge solutions to help your organization navigate the complex terrain of the life science industry.
We work closely with you to deliver the quality services that you need during each phase of your company’s life cycle and in the jurisdictions in which you operate. With CBIZ by your side, you can focus on what you do best: pushing the boundaries of innovation and scientific discovery.
The Authors from CBIZ
The contents of this column series is written by some combination of the following CBIZ team of professionals dedicated to Early-Stage Life Science Companies. Those include Mark Siegfried, Gregg Landers, Greg Seckington, Chris Ellis, and Brian Baird. Should you see any of us at a SoCal event please say hello and give us your feedback on the column.
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