Understanding Net Cash Flows for Your Service Business
Let's get straight to it: net cash flows are the bottom line of your business's cash game over a certain period, whether that's a month or a quarter. It’s the final tally of all the actual cash that came into your bank account minus all the cash that went out. If the number is positive, you brought in more cash than
A Practical Guide to the Cash Flow Formula for Business Health
At its most basic, the cash flow formula is simply Total Cash Inflows minus Total Cash Outflows over a set period. This quick calculation gives you a snapshot of how money is moving through your business, telling you whether you've gained or lost actual cash. Why Cash Flow Is Your Business's Most Honest Metric Think of your business as a high-performance engine.