2 min read
Cash flow
A plain-English guide to small business cash flow—what it is, why it beats profit, ways to improve it, how to forecast, and metrics to track.
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Step 5 · Use the numbers
Running your business
Your invoices are more than payment requests—together they are a record of how the business is actually doing. Open balances show what you’re owed. Aging shows what’s getting old. Cash flow shows whether profit on paper matches money in the bank.
This path explains cash flow, gross vs net profit, financial statements, accounts receivable, aging reports, DSO, AR turnover, cash application, payment reconciliation, working capital, and revenue forecasting—in plain language for freelancers and small teams.
Guides in this section
2 min read
Gross profit vs net profit
Gross profit shows if your work is profitable; net profit shows if your business is. Learn the difference, calculations, and what margins mean.
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2 min read
How to read financial statements
Learn how to read the income statement, balance sheet, and cash flow statement—in plain English—and use them to make smarter decisions.
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2 min read
Accounts receivable
A plain-English guide to accounts receivable for small businesses—the AR process, key metrics, common mistakes, and how to get paid faster.
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2 min read
Invoice aging report
Learn what an aging report is, how to read aging buckets, and how to use it to prioritize collections—with a sample layout.
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2 min read
Days sales outstanding
What is DSO? Learn the formula, a worked example, what counts as a good DSO, and practical ways to reduce it.
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2 min read
Accounts receivable turnover
Learn what the AR turnover ratio is, how to calculate it with a worked example, what a good ratio looks like, and how to improve collections.
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2 min read
Cash application
Cash application is how you match customer payments to the right invoices. Learn why it matters and best practices to keep balances accurate.
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2 min read
Payment reconciliation
Payment reconciliation in plain English: what it is, why it matters, and a step-by-step process to match payments to invoices and bank deposits.
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2 min read
Working capital
Working capital is the cash your business can use right now. Learn what it is, how to calculate it, and how to improve it—with examples.
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2 min read
Revenue forecasting
Simple revenue forecasting methods for small businesses—with examples to plan cash flow and grow with confidence.
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