Two Numbers, Two Stories: Cash vs Surplus
About this episode
This episode discusses the critical difference between cash and surplus in charity finance and its implications for governance.
Grab your copy of my book Charity Finance from A - Z Check out ExpensePlus and sign up for a month's free trial and 10% off your first year's subscription, using my referral link http://expenseplus.co.uk/r/AI-BANC “We’ve got money in the bank, so why are you saying we’re tight?” This episode tackles one of the most common (and costly) misunderstandings in charity finance: confusing cash with surplus. In calm, plain English, Aishat explains why these two numbers often tell very different stories; and how mixing them up can lead boards into false reassurance, unnecessary panic, or poor strategic decisions. This is an essential listen for trustees, CEOs, and senior leaders who want to understand the numbers without fear, jargon, or judgement. KEY TAKEAWAY Cash is timing. Surplus is performance. They are connected, but they are not the same. Understanding the difference helps boards move from fear to clarity, and from reactive decisions to confident governance. BEST MOMENTS “Cash answers one question: what can we physically pay today?” “Surplus tells you whether you lived within your means — not how much money you have.” “Cash feels real. Surplus feels abstract. That’s why boards mix…
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