Why Cash Flow is the Real King — Not Just Revenue

📊 Why Cash Flow is the Real King — Not Just Revenue

By RQ Financial Services Inc.

When most business owners talk about success, they focus on revenue. But here’s the truth: revenue without cash flow is like a beautiful car with no fuel — it looks great but won’t take you anywhere

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🔍 So What Is Cash Flow?

Cash flow is the movement of money in and out of your business. While revenue reflects sales, cash flow reflects reality — when you actually receive the money and pay your bills.

There are 3 types of cash flow you must watch:

1. Operating Cash Flow – Day-to-day business activities.

2. Investing Cash Flow – Buying/selling assets.

3. Financing Cash Flow – Loans, equity, dividends.

   
   

🚨 Common Cash Flow Mistakes:

• Counting unpaid invoices as “profit”

• Overspending during a “good month”

• Ignoring upcoming tax payments

• Not reviewing cash flow statements regularly

  
  

✅ Simple Tips to Stay Ahead:

• Use accounting software that tracks real-time cash flow

• Build a 3-month cash reserve

• Set reminders for receivables and automate follow-ups

• Review your cash flow statement monthly

💡 Pro Tip from RQ Financial:

“Profit tells you how you performed — cash flow tells you if you’ll survive.”