The actual money moving in and out of a business, separate from profit on paper.
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ProdLinc Editorial
ProdLinc Team
Published Jan 12, 2026
2 min read
Quick answer
Cash flow is the actual movement of money in and out of a business over a period of time. A business can be profitable on paper and still run short on cash if money is tied up in unpaid invoices or inventory.
Profit and cash are not the same thing. A sale counted as revenue today might not turn into cash in your account for weeks, which is why tracking cash separately from profit matters, especially for a small business.
