How much cash should a dance studio keep?

A dance studio bills tuition monthly or by session, often by bank draft. Costume and recital fees come in months before the costumes and the theater are paid for. Summer brings a dip as the season ends, while rent stays the same.

Payroll per run, all-in $ How often you run payroll Fixed bills per month (rent, loans, insurance, software) $ Days your customers take to pay, on average days Cash in the bank today $

Minimum to keep

Two payroll runs plus one month of fixed bills

Comfortable level

Covers costs while you wait for customers to pay, plus one month

Weeks your cash covers

If no customer paid you

The starting numbers are an example. Replace them with yours.

How cash moves in a dance studio

Tuition runs on the school-year calendar, with a slower summer.
Costume fees are collected in the fall, and costume orders are paid in winter.
Recital tickets and theater rental move a lot of cash in one month.
Teachers are often paid per class, so payroll follows the schedule.

Why the usual rule falls short

Two studios each bill $26,000 a month in tuition. One collects costume fees and orders costumes in the same month. The other collects in October and pays in January. The second has cash that looks spare in November but is already spoken for.

How the calculator works

Result	Formula
Minimum to keep	2 × payroll per run + 1 month of fixed bills
Comfortable level	Monthly costs × (days to collect ÷ 30 + 1)
Weeks your cash covers	Cash ÷ weekly costs

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Also for dance studio owners, see the dance studio monthly financial report.