What is cash flow?
A healthy cash flow is the lifeline of your business. Get the timing right for receiving money into your business versus your outgoings, and you could flourish. Get it wrong, and you may falter. To help you understand how cash flow can affect your business, click below to watch our short video explainer.
Put simply, cash flow is the amount of cash going in and out of your business.
The cash going into your business less the money going out of your business equals your cash flow position. Your cash flow position could be one of three outcomes:
Ideally, you want to plan for positive cash flow for your business so can grow your business and plan ahead for times when your business might experience negative cash flow.
This information does not take into account your personal circumstances and is general. It is an overview only and should not be considered a comprehensive statement on any matter or relied upon. Consider obtaining personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this article, including when considering tax and finance options for your business.