Starting a new business? Get 40% off our accountancy services for 3 months! 😀


In accounting, cash doesn’t just mean physical notes and coins. It also refers to money available to the business, such as in its bank accounts.

When we talk about cash flow, this means how funds move in and out of a business. Managing your cash flow is important, as it helps you make sure you have the money to pay bills when you need to.

It is the fuel in the tank – too little and your business could come to a standstill – which is one of the most common reasons a business fails. So, let’s take a look at how to create and maintain a healthy cash flow.

How can I manage my cash flow?

Startup business accountancy services

Is revenue part of cash flow?

Your revenue is a part of your cash flow, but it only refers to what is coming into your business accounts. Cash flow measures what is coming in and going out.

How do I read a cash flow statement?

Cash flow statements comprise three areas:

How do I increase my cash flow?

It sounds obvious, but increasing your revenue is one of the fastest ways of increasing your cash flow.

Chat to one of our team about accountancy support for your business. We operate a low monthly fee to help you spread the cost, and maintain a healthy cash flow! Call 020 3355 4047, use the live chat button on your screen, or get an instant tailored quote online.

About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible.

Inline Feedbacks
View all comments

Read more posts...

Information for Employers about the Job Support Scheme (Open and Closed Schemes)

Our guide to the Job Support Scheme Open and JSS Closed for employers affected by coronavirus COVID-19. The Job Support Scheme was announced as…

Read More

Does My Startup Need a Website?

All new start-up businesses wonder whether they need a website. It’s true that plenty of businesses benefit from having a good site,…

Read More

Understanding Accountancy Terms: Liability

In our ongoing series of accountancy FAQs we explain accounting jargon to help small business owners. In this article we explain exactly…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure