Start with these questions
- What is cash inflow?
- What is cash outflow?
- What causes cash shortages?
Understanding the topic
Cash flow tracks money actually coming into and leaving the business.
Why it matters to your business
Understanding timing helps you pay suppliers, staff, and bills. Connect this idea to your own records and decisions, then review what changes when you apply it.
Practical example for a Ghanaian business
A Tema supplier receives GHS 1,200 from customers and pays GHS 900 for stock and transport, a net cash inflow of GHS 300. A separate GHS 500 credit sale is tracked as money owed until collected. Recording both columns helps explain why sales and cash balances differ.
Illustrative example. This does not describe a BrightEdge customer or promise a financial result.
Common mistakes
- Confusing credit sales with money already received.
- Making a decision without checking the records and circumstances behind it.
Recommended actions
- Create two columns: cash received and cash paid.
- Write down the records or information you need and check any gaps.
- Choose who will complete the action, set a date and review the result.
Educational video
The video section is ready for the approved companion video. Read the explanation and complete the action above while video production is in progress.
General business education. Confirm current tax, legal and investment requirements before applying them to your circumstances.
Related BrightEdge support
Financial Reporting and Budgeting →