ReceiptTrack

Cash flow basics for small businesses

Cash flow is the movement of money into and out of the business. Profit can look fine while cash still feels tight if customers pay late, stock is bought early, tax bills arrive, or subscriptions and supplier bills hit before income lands. A basic cash flow habit tracks expected income, committed costs and timing for the next few weeks or months. A simple guide to cash flow that focuses on timing, not jargon.

Key takeaways

• Cash flow is about timing, not only profit.
• Late invoices and early supplier bills can squeeze a healthy business.
• Receipt and expense records help you understand committed costs.
• A simple four-week view is better than guessing from the bank balance.

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