Cash flow
02 · FinanceCan the business meet its obligations?
Cash flow is the money that moves in and out of the bank. A business can look profitable on paper and still run short of cash, which is why it gets its own place on the list.
What to track
Cash in and out
What came in and what went out over the period, and the difference between the two.
Closing balance
What is in the bank at the end of the period, and how many weeks of costs it covers.
Overdue payments
Money customers owe you and bills you owe. Late payments in either direction squeeze cash.
Check it weekly. Look ahead at least a month for bills that are coming.