Business Cash Flow Calculator
Analyze your business cash flow, calculate burn rate, and project your financial runway. Understand if you need working capital to cover gaps.
Understanding Business Cash Flow
Why Cash Flow Matters
Cash flow is the lifeblood of your business. Even profitable businesses can fail if they run out of cash. Understanding your cash flow helps you plan for expenses, identify problems early, and make better decisions.
Cash Flow vs Profit
Profit is what remains after expenses on paper. Cash flow is actual money moving in and out. You can be profitable but cash-poor if customers pay slowly or you have large upfront costs.
Improve Collections
Invoice promptly, offer early payment discounts, require deposits, and follow up on overdue payments to improve your collection rate.
Manage Payments
Negotiate longer payment terms with suppliers, time large purchases strategically, and prioritize payments based on cost of delay.
Build a Buffer
Maintain 3-6 months of operating expenses in reserve. Consider a line of credit as a safety net for unexpected shortfalls.