Why most scores are useless
A single opaque number out of a hundred tells you nothing you can act on. Worse, it invites you to optimise the score rather than the finances, and when it moves you have no idea which behaviour moved it.
Karchu splits the score into areas that correspond to decisions you can actually make, and attaches the evidence to each one.
The seven areas
Cash flow looks at whether money in covers money out across recent periods. Expense growth compares this period's spend with the trailing average. Recurring expenses measures how much of your outgoings are locked into commitments. Income stability looks at how much your incoming amounts vary.
Vendor concentration measures how much of your spend sits with a handful of suppliers. Unusual spending counts transactions well outside your normal range for that merchant. Cash position looks at the direction of your balance over the period.
Explanations, not verdicts
Each area reads like a sentence rather than a grade. Expense stability seventy four out of one hundred, because recurring expenses increased fourteen percent over the last ninety days. From there you can open the recurring expenses view and see the three charges responsible.
That is the whole point. The score exists to point you at a transaction list, and every area links through to the rows it was calculated from.
What it is not
It is not a credit score, it is not visible to anyone outside your workspace, it is not a benchmark against other businesses, and it is not financial advice. It is arithmetic over your own statements, explained in plain language.
Frequently asked questions
What does the financial health score measure?
Seven areas derived from your own transactions: cash flow, expense growth, recurring commitments, income stability, vendor concentration, unusual spending and cash position. Each area is scored separately and every score comes with the sentence that explains it.
Is this financial advice?
No. It is a description of patterns already present in your statements, not a recommendation. Karchu is not a financial adviser and the score should not be treated as one.
Why is every score explained?
A number on its own is not useful and cannot be argued with. Karchu shows the reason next to each score, for example that recurring expenses rose fourteen percent over the last ninety days, so you can check the underlying transactions and decide whether it matters.
Can I compare myself to other businesses?
No. The score is calculated only from your own history, so it tells you how this quarter compares with your previous ones. Karchu does not have other users' data to benchmark you against, and would not use it if it did.
Which plan includes it?
The financial health score is available on Pro, Business and Enterprise.