Finance
How to Improve Business Cash Flow
Why cash on hand can differ from revenue, and what to review each month.
Revenue shows what you have billed or sold. Cash flow shows whether money is available to pay suppliers, salaries, tax and growth investments.
A business can look profitable and still run short if customers pay late, inventory ties up cash, or tax and GST fall in the same month as large expenses.
Review cash in, cash out and upcoming obligations — not only monthly revenue — before you commit to hiring, purchasing or expansion.