Cash Flow
The money moving in and out of a business or budget over a period — the lifeblood of any operation.
What does cash flow mean?
Positive cash flow means more comes in than goes out. A business can be profitable on paper yet fail from negative cash flow, because bills are paid with cash, not accounting profit.
Put it to use
Cash Flow Calculator Having adequate cash flow is essential to keep your business running. Use this calculator to help you determine the cash flow generated by your business. Working Capital Needs Calculator Working capital essential to running your business. This calculator assists you in determining your working capital needs for the next year.
Related terms
Cash Flow — frequently asked
What is the difference between cash flow and profit?
Profit is revenue minus expenses on paper; cash flow is the actual money moving in and out. A business can be profitable yet cash-poor if customers pay slowly — which is why cash flow, not profit, pays the bills.
How can I improve cash flow?
Invoice promptly and shorten payment terms, negotiate longer terms with suppliers, trim unnecessary expenses, and keep inventory lean. Smoothing the timing of money in versus out matters as much as the totals.