Is the life blood of your company

The Samee Project - Piggy-Bank Cash FlowCash Flow is the difference in the amount of cash you have at the beginning of a period (opening balance) and the amount at the end of that period (closing balance )

It’s called positive if the closing balance is higher than the opening balance – ΔGood Thumbs Upotherwise called negative –  ∇Bad Thumbs Down


Your Cash Flow can be increased by :

  • Selling more goods or services
  • Increasing your product selling price
  • Reducing running costs
  • Collecting overdue invoices faster
  • Paying invoices to suppliers slower
  • Bringing in more equity
  • Selling of an asset
  • Taking out a loan


Your level of cash flow is not necessarily a good measure of performance and vice versa :

High levels of cash flow do not necessarily mean high or even any profit –

High levels of profit do not automatically translate into high or even positive cash flow

You may turnover £1 million – but if you only make £1 profit – Then all you have been is a busy fool !!