Cash flow: definition, example, and why it matters
Profit ≠ cash flow. A trade can be profitable on paper but cash-poor if customers pay slowly. Track inflows (paid invoices) vs outflows (payroll, materials) weekly.
Short definition. The net movement of cash into and out of a business over a period.
Category. Cash flow is a accounting term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds cash flow into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does cash flow mean?
Profit ≠ cash flow. A trade can be profitable on paper but cash-poor if customers pay slowly. Track inflows (paid invoices) vs outflows (payroll, materials) weekly.
