Net cash flow is the money left over after subtracting total expenses from total income over a period. It is calculated as Total Income − Total Expenses. Positive cash flow means you are building reserves; negative cash flow means you are drawing them down.
Why cash flow matters more than profit
Profit is an accounting figure; cash flow is the actual money moving through your accounts. A profitable business can still run out of cash if receivables lag bills. Tracking monthly net cash flow shows whether operations are self-sustaining.
Build cash flow from real bank data
The most reliable cash flow figures come straight from your bank statements. Convert your PDF statements to a spreadsheet, categorise the inflows and outflows, and feed the totals into this calculator for an accurate picture.