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Infographic: Cash flow and keeping the money coming in

Cash flow is crucial to a successful business. It's even been called the "oxygen" of business.

On this page

  • What cash flow is and its importance
  • About the basic bookkeeping tools to manage it

Infographic Cashflow problems

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Cash flow problems? Keep the money coming in

Make sure your business is making a profit

Completing these monthly and at the end of the financial year will give you a snapshot of your financial health.

1. Balance sheet

2. Profit and loss statement

3. Cash flow statement

1. Balance sheet

Your balance sheet will show the financial health of your business on any given day. It will tell you what your business is worth. The value of the business = assets - liabilities.

Tools to help:

2. Profit and loss statement

Your profit and loss statement will show your business' income and expenses over a period of time. It will let you know if your income is no longer meeting your expenses.

Tip: Find ways to take action so you're always making a profit. For example, if business expenses are increasing, consider raising your price.

Tools to help:

3. Cash flow statement

Your cash flow statement will show money coming into and going out of your business for a set time period. It will give you a warning signs to help avoid future financial trouble.

Tip: Net operating cash flow is the amount of cash that a business has after paying its bills. If net operating cash flow is less than profit after tax - you are spending more than you earn.

Tools to help:

Not sure which bookkeeping system to use?

Get help or learn a new skill