Track your business's financial health with our free Cash Flow Calculator. This essential tool helps entrepreneurs and business owners calculate operating cash flow, net cash flow, and analyze their company's liquidity. Understand how money moves through your business to make better financial decisions.
Understand whether your business generates enough cash to sustain operations and grow.
Identify potential cash shortages before they become critical problems.
Make informed choices about business expansion based on actual cash position.
Cash flow measures the net amount of cash moving in and out of your business. There are three main types of cash flow:
Operating Cash Flow = Operating Revenue - Operating Expenses
Cash generated from core business operations.
Investing Cash Flow = Capital Expenditures + Asset Sales
Cash used for or generated from investments.
Net Cash Flow = Total Cash Inflows - Total Cash Outflows
The overall change in your cash position.
Profit is an accounting concept that includes non-cash items like depreciation. Cash flow tracks actual money moving in and out of your business. A company can be profitable but still have cash flow problems if money is tied up in inventory or receivables.
Most businesses should review cash flow monthly. Seasonal businesses or those with tight margins may need weekly analysis. Regular monitoring helps anticipate and prevent cash crunches.
Strategies include: (1) Accelerating receivables through early payment discounts, (2) Extending payables when possible, (3) Managing inventory efficiently, (4) Securing a line of credit for emergencies.
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