Glossary · Finance & Accounting

Cash flow

The movement of money into and out of a business over a period — the lifeblood of day-to-day trading.

What it means

Cash flow is the actual money moving into and out of your business over a given period. Positive cash flow means more is coming in than going out; negative cash flow puts pressure on your ability to pay wages, suppliers and tax when they fall due.

A business can be profitable on paper and still fail if cash arrives too slowly. Late-paying customers are one of the most common causes of cash-flow stress for small and medium businesses.

Protecting it

Tightening the time between issuing an invoice and being paid is the most direct lever you control. Clear terms, prompt reminders and early action on overdue accounts all help. You can estimate the impact of slow payers using our cash-flow tools, and see working capital for the bigger picture.

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