See operating, investing, financing cash flow — plus runway and closing balance.
A small-business cash flow statement on one screen. Operating activities (collections, payroll, vendors), investing (capex), financing (loans, draws, debt service), and the net change in cash.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Cash in minus cash out over a period.
Cash flow is the actual movement of money — not profit. Revenue is recorded when earned; cash is recorded when received. A profitable business can have negative cash flow if customers pay slowly.
Profit is accrual; cash flow is actual.
Profit (net income) includes non-cash items (depreciation), uncollected revenue (receivables), and unpaid expenses (payables). Cash flow tracks the actual bank balance. Businesses die from poor cash flow even with strong profit.
Operating, investing, financing.
Operating: from running the business (collections, payments). Investing: buying/selling assets (equipment, property). Financing: loans, equity raises, dividends. Total = net change in cash for the period.
Cash pays bills; profit doesn't.
"Cash flow is what keeps the lights on." A business with $500k profit and $0 cash can't make payroll. A business with $0 profit and $200k cash can. Cash flow is the survival metric; profit is the long-term metric.
The mechanics in short answers — no jargon, no upsell.
Cash collected from customers minus cash paid to suppliers, employees, and overhead. The core engine.
Cash spent on equipment, property, software (usually negative). Add cash from selling assets if applicable.
Cash from new loans, owner contributions, equity raises (positive). Cash paid for loan principal, owner draws, dividends (negative).
Operating + investing + financing = net change in cash. Add this to opening balance to get closing cash.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Cash generated from running the business.
Cash for assets — usually negative for growing businesses.
Cash from loans, investments, owner draws.
The bottom line — did your bank account grow or shrink?
How many months you have at current burn.
Drop-in numbers from your bank and P&L.
Everything you might ask before, during, or after using this tool.
Revenue is what customers owe you (booked when sales close). Cash flow is what they've actually paid. Businesses with net 60 payment terms can have 2 months of "revenue" with $0 cash. The gap (accounts receivable) is invisible on a P&L but critical to cash flow.
Monthly negative cash flow — the rate you're consuming cash. A startup burning $50k/month with $300k in the bank has 6 months of runway. Burn rate × runway tells you how long until you need more capital.
Five levers: (1) faster customer payments (terms, deposits, late fees), (2) slower supplier payments (negotiated terms), (3) inventory reduction, (4) recurring revenue models, (5) financing line of credit as buffer.
Usually yes, but not if it comes from unsustainable financing (taking on debt to cover losses) or under-investment (skipping maintenance, R&D). Strong operating cash flow is the real signal of business health.
Operating cash flow minus capital expenditures. The cash available after maintaining the business. Often the most useful number for valuing a business — what's actually distributable to owners.
Both, but cash flow drives survival. Build a 13-week rolling cash flow forecast — what comes in, what goes out, by week. Update weekly. This is the operational document. The P&L is the strategic one.
Weekly for small businesses or anyone tight on cash. Monthly for stable businesses. Quarterly is too infrequent for most — surprises accumulate. The 13-week cash flow is the standard for actively-managed businesses.
Days inventory outstanding + days sales outstanding − days payables outstanding. Measures how long cash is tied up in operations. Shorter = better. Negative (suppliers paid after customers collect) is the operational gold standard.
Other Lazysmirk tools that pair well with this one.
Calculate gross, operating, and net profit margins on any product, service, or business. See the difference between margin and markup, and price like you mean it.
Set a target margin, get the price, see profit at volume — with markup vs margin and break-even built in.
Calculate monthly payments, true APR, origination fees, and total cost on a small-business term loan — with full amortization schedule and no-fee comparison.
A 50/30/20 budget planner with custom categories — see your needs, wants, and savings split in real time.
Set the freelance or contractor rate you can defend. Target take-home, billable utilization, overhead, and self-employment tax — all in one number.
Profit follows accrual accounting: revenue when earned, expenses when incurred. Cash follows the bank.
A business invoicing $100k of services in December (collected in February) shows $100k of revenue in December but $0 cash. The "profit" doesn't pay the December payroll.
Cash flow is the survival metric. Profit is the long-term-value metric. Both matter, in that order.
Operating: cash from running the business. Should be positive for a sustainable business.
Investing: usually negative for growing businesses (buying equipment, software, property).
Financing: positive when raising capital, negative when paying it back or distributing to owners.
A healthy business has positive operating cash flow large enough to fund some investing and still return cash via financing.
Runway = cash on hand ÷ monthly burn.
At $300k cash and $50k/month burn: 6 months runway. At 3 months remaining, you should be actively fundraising or cutting burn.
Always know your runway. Always.
1. Customer payment terms — net 30 instead of net 60, deposits up front, automated billing.
2. Supplier terms — push payables out, negotiate net 60 or net 90.
3. Inventory — match production to actual demand, not forecast optimism.
4. Revenue model — recurring (subscription) beats project-based for cash predictability.
5. Line of credit — not for ongoing operations but as a buffer for genuine timing gaps.
Two short notes worth reading before you trust any number on this page.
Your loan amount, rate, and prepayment inputs never leave your device. No accounts, no cookies on your numbers, no analytics on the values you type. Disconnect from the internet and it still works.
We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
