Understanding Cash Flow

Cash flow is the heartbeat of any business or household. Even profitable companies can run into trouble if they don’t manage their cash properly. Understanding your cash flow can help you avoid surprises, stay solvent, and seize opportunities.

What Is Cash Flow?

Cash flow refers to the money moving in and out of your business or personal accounts. It's not just about income and expenses — it's about timing. Having money at the right time is essential for paying bills, investing, and staying operational.

Types of Cash Flow

• Operating Cash Flow: Day-to-day income and spending
• Investing Cash Flow: Buying or selling long-term assets
• Financing Cash Flow: Loans, repayments, and equity financing

How to Improve Your Cash Flow

• Send invoices promptly and follow up on late payments
• Negotiate better terms with suppliers
• Forecast cash needs for upcoming months
• Delay non-essential spending
• Build a reserve fund for low-revenue periods

Why It Matters

Without proper cash flow, businesses miss payroll, delay supplier payments, or lose out on growth opportunities. Personal finances can fall into debt. Monitoring and projecting cash flow ensures financial stability and control.

Need Help Managing Cash Flow?

At JM SULA, we help you understand your cash inflows and outflows, optimize payment cycles, and forecast future needs. Let's turn your cash into a tool for growth.