6 min read

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What is cash flow?

Cash flow is the movement of money in and out of your business over time. It answers a question profit can't: do you actually have money in the account right now?

Cash in

Money coming in — mainly customer payments, plus any other receipts. Note this is collections, not invoices issued.

Cash out

Money going out — supplier payments, expenses, salaries, rent and tax paid.

Net movement & balance

Net movement is cash in minus cash out for the period. Add it to your opening balance to get your closing balance — the cash you actually hold.

Profit is not cash

You can be profitable and still short of cash — for example when customers pay late or you've bought stock. That's why tracking cash separately from profit matters.

How WasliPay helps

WasliPay tracks payments received and made, expenses, and cash & bank balances, and shows a cash flow view so you can see collections, outflows and your position at a glance.

FAQ

Is cash flow the same as profit?+
No. Profit includes unpaid invoices and excludes some cash movements. Cash flow is actual money in and out.
Can WasliPay show my bank balance?+
You can track cash & bank accounts and adjustments in the dashboard.
How do I improve cash flow?+
Invoice promptly, follow up overdue balances, and watch the timing of supplier payments.
This guide is for general information only and does not replace professional tax or accounting advice.

Do this in WasliPay

Start free with the invoice tool, or open the business dashboard.