Cash Flow 101: What Every Small Business Owner Needs to Know

The Wild World of Cash Flow.

You’ve got money coming in, and bills going out—so why does your bank account feel so tight?

Welcome to the wild world of cash flow.

Many small business owners focus on profit, but forget about cash flow. And guess what? You can be profitable and still not have enough money to pay your bills.

What Is Cash Flow?

Cash flow is the movement of money in and out of your business. It includes:

• Payments from customers
  

• Vendor and contractor payments
  

• Payroll
  

• Subscriptions, rent, taxes, etc.
  

Positive cash flow means more money is coming in than going out. Negative cash flow? That’s when things get tight.

Common Cash Flow Problems:

• Sending invoices late (or not at all)
  

• Not having a system to track payables and receivables
  

• Over-investing in inventory or equipment
  

• Irregular income with regular expenses
  

How We Help:

We track your income and expenses, help you spot red flags early, and even set up monthly financial summaries so you can plan ahead.

With clean books and better insight, you’ll finally understand where your money is going—and how to keep more of it.

Need help managing your cash flow? Reach out to The Bookkeeping Pros for support that actually makes sense.