Cash Flow Calculator

Cash flow is the movement of money in and out of your business. Positive cash flow means more money coming in than going out. It's different from profit - you can be profitable but still have cash flow problems if money is tied up in unpaid invoices or stock.

Cash flow is the lifeblood of your business. Without sufficient cash, you can't pay suppliers, staff, or bills - even if you're profitable on paper. Many profitable businesses fail due to poor cash flow management.

Key strategies include: invoice promptly and follow up on late payments, negotiate longer payment terms with suppliers, offer early payment discounts to customers, manage stock levels efficiently, and consider invoice financing for large orders.

Profit is revenue minus expenses (including non-cash items like depreciation). Cash flow is actual money received minus money paid out. You can be profitable but cash-poor if customers haven't paid, or cash-rich but unprofitable if you've received deposits for work not yet done.

A cash flow forecast predicts your future cash position based on expected income and expenses. It helps identify potential shortfalls before they happen, allowing you to arrange finance or adjust spending in advance.