2 min readProduct Updates
23 October 2024
Running a successful eCommerce business goes beyond having great products or a sleek website.Managing cash flow effectively is critical to keeping your business thriving.CloudFO has identified the four essential cash flows you need to understand to ensure long - term success.
This represents the cash generated from your core business operations.It is a key indicator of your business’s ability to sustain itself without external funding.Monitor your revenue from sales and subtract operating expenses like salaries, rent, and utilities.
Investing cash flow reflects the money spent on or earned from investments in assets like equipment, inventory, or technology.While this is often negative for growing businesses, ensuring these investments provide value over time is critical.
Financing cash flow accounts for money coming in from or going out to investors, lenders, or shareholders.This includes loans, equity investments, and dividends.Balance this carefully to avoid over - reliance on external funding.
This is the cash left over after covering operating expenses and capital expenditures.It is a measure of profitability and flexibility, allowing you to reinvest in your business or manage unforeseen expenses.
Consider using financial tools like CloudFO to track and forecast your cash flows effortlessly.Automation reduces errors and gives you a clearer picture of your financial health.
Mastering these cash flows will provide you with the insights needed to make informed decisions and keep your eCommerce business running smoothly.
