Welcome to the How of Business with your host, Henry Lopez, the podcast that helps you start,

run, and grow your small business. And now, here is your host.

Welcome to this episode of The How of Business. This is Henry Lopez. And on this episode,

I'm going to focus on cash flow management. How do you calculate how much cash you will have and need

at a future point in time? And why is this important to help you operate a profitable small

business? I also have a free download for you, the cash flow worksheet to help you calculate

your cash flow and the top 10 cash flow tips list. To receive more information about the

Howa Business, including the show notes page for this episode, and how you can continue

supporting my show and receive exclusive content and discounts through a Patreon membership,

please visit Thehowabusiness.com. And thanks to all of you for listening to my podcast.

Because of your continued support, my show now reaches over 100,000 listeners every month.

I specifically want to thank Navnit, Kevin, and Taryn, who recently joined my Patreon

membership program. Thank you. So what is cash flow? The business

accounting term cash flow refers to the net amount of cash and cash equivalence being transferred

in and out of a business. Actual cash that is received by the business that I'll refer to here

as cash in represents the inflows of money,

the actual inflows of money into your bank accounts.

While the actual money spent, which I'll refer to as cash out, represents the outflows,

the money coming out of your bank accounts.

A company's ability to create value and sustain profitability is fundamentally determined

by its ability to generate positive cash flows.

The goal of business is to maximize which referred to as long-term free cash flow.

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