What is Cash Flow? 

Cash flow is a handy metric to understand when running an eCommerce business. Essentially, cash flow refers to the movement of money in and out of your business over a given period of time, usually each month. Cash ‘flows’ in from the sale of your products or services, and ‘flows’ out in the form of expenses such as tax, loan repayments, insurance or production cost. To work out your business’s cash flow, simply use the following formula:
Cash Flow = Monthly Income - Monthly Expenses
There are several different methods of calculating cash flow that include or exclude certain types of income or expenses, each producing a different view of your business’s overall financial situation. The structure of your eCommerce business will often determine which method of calculation gives the best picture of your financial position.

Download the full guide today to explore: 

  • What is Cash Flow 
  • Calculating Cash Flow 
  • What is a Cash Flow forecast 
  • Managing Cash Flow 
  • How to improve Cash Flow 
  • Cash Flow models 

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