Cash Flow
In one sentenceThe actual money moving in and out of the business. Profitable companies can still run out of cash.
What it means
Profit is an accounting result; cash flow is what is in the bank. Slow-paying clients, inventory, loan payments and equipment purchases can make cash tight even in a profitable month. The cash flow statement shows cash from operations, investing and financing.
How to use it
- Keep a simple 13-week cash forecast: expected money in and out each week.
- Invoice promptly, collect deposits up front, and chase late payments (Accounts Receivable & Payable).
How AI helps
AI can turn your bank export into a cash forecast and flag weeks where you might run short.
Prompt to try
Here are my bank transactions for the last 3 months and my expected invoices and bills for the next 3: [paste]. Build a 13-week cash forecast and flag any week where my balance could drop below $[amount].
Fill in the [brackets], then paste it into evyAI, ChatGPT, Claude or Gemini.
Related terms
Runway Burn Rate Accounts Receivable & Payable P&L
Still fuzzy? Ask the evyAI agent to explain Cash Flow with examples for your business.
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