Accounting Resource
Cash Flow for Small Business
Cash flow tracks movement of money in and out of your business from operations, investing, and financing.
Why Cash Flow Beats Revenue
Revenue does not guarantee liquidity.
Cash planning helps avoid payroll and supplier stress.
Common Levers
Collect receivables faster.
Negotiate supplier terms.
Delay non-essential spending.
Step-by-Step Guidance
- Forecast 8-12 weeks forward.
- Track expected inflows and committed outflows.
- Set minimum cash threshold and alerts.
Small-Business Use Case
A distribution business shifted customer terms from 60 to 30 days and reduced stock reorder frequency to stabilize weekly cash.
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FAQ
How far ahead should I forecast?
Most small businesses should keep a rolling 8-12 week cash forecast.