Published November 1, 2026 · Beginner education
THE IDEA, IN PLAIN LANGUAGE
Cash flow is the timing and movement of money in and out. A business can show accounting profit while lacking the cash to pay a bill. Track expected payment dates alongside expenses, taxes and reserves.
KEY VOCABULARY
- Receivable
- Money owed to your business.
- Cash flow
- Money moving into and out of the business.
A PRACTICAL EXAMPLE
A customer owes $500 next month, but a $200 bill is due Friday. The receivable does not solve this week’s cash shortage.
A COMMON MISTAKE
Treating an unpaid invoice as money available to spend.
WHAT TO REMEMBER
Plan around when money arrives, not only when sales happen.
SOURCE REFERENCES
Use these external resources to study further. Explanations here are our own; external resources may change.
RELATED VIDEOS
No lesson-specific video is published here yet. Follow @koufaxbtb on Instagram for existing creator content; it is not a substitute for these source references.