The movement of money in and out of a business over time—tracking when you receive and spend cash.
Cash flow is the movement of money through your business. Cash comes in when clients pay invoices. Cash goes out when you pay for materials, wages, rent, and other expenses. Positive cash flow means more money is coming in than going out. Negative cash flow means you're spending more than you're receiving.
For small businesses, cash flow is often more important than profit for day-to-day survival.
A business can be profitable on paper but still run out of cash. If you complete a $50,000 project but the client takes 90 days to pay, you might not have cash to cover next week's expenses. Profit measures if you're making money overall. Cash flow measures if you have money available right now.
Healthy cash flow comes from getting paid quickly, timing expenses wisely, and maintaining reserves. Invoice promptly, offer incentives for early payment, negotiate favorable payment terms with suppliers, and always know when money is coming in versus when bills are due.
Invoicer helps you get paid faster so you always have cash when you need it.
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