Small business

Cash flow

RETAILBOSS ReferenceUpdated November 2, 2026

Cash flow is the movement of cash into and out of a business over a stated period.

How it works in retail

Receipts, supplier payments, payroll and other cash movements determine the change in available cash. Profit and cash flow differ because revenue, expenses and payments can occur at different times.

A retail example

A retailer pays for seasonal stock in September but sells much of it in November. Cash leaves before the related sales receipts arrive.

What to keep in mind

A profitable business can face a cash shortage. Stock purchases, payment terms, debt repayments and capital spending must be considered alongside the income statement.

Sources & further reading

BDC: Financial indicators and cash flow

Examples are illustrative. Terminology and measurement conventions can vary by business and market.

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