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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.

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