Glossary
Cash flow
Cash flow is the cash that really came in and went out over a period, and its net says whether your cash grew or shrank.
What it means for a shop owner
A shop can profit on paper and still fail to pay rent because its money sits in customer debts and stock. That is why you watch cash flow beside profit: profit says whether the shop works, cash flow says whether it can pay tomorrow.
A worked example
In the month 2000 came in as cash and 1700 went out to suppliers and rent. Net cash flow = 2000 - 1700 = +300, and a 500 sale on credit is not part of it.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes