Definition

Keeping simple, clear records of every sale, expense, and payment. Good records make it easier to file taxes and see where money is going.

What to consider

  • Plan for both regular and unexpected cash needs.
  • Monitor inflows and outflows closely.
  • Adjust spending based on cash availability.

Real world scenarios

  • A retail store in Dallas monitors daily cash flow to avoid shortages during peak hours.
  • An online business uses cash flow management tools to plan for upcoming expenses.
  • A consulting firm reviews cash movement weekly to ensure operational stability.

Related terms

Entrepreneurial Finances