Business Cash Flow Calculator
Virtual CFOTrack your actual cash coming in vs going out. Distinguish between accounting profit and real cash in the bank to avoid liquidity crunches.
Why Fast Invoicing Protects Cash Flow
82% of small business failures are caused by poor cash flow management, not lack of profit. Even if your invoices show high revenue, delayed customer payments create a cash crunch when GST liabilities and vendor bills fall due on the 20th of the month.
Send invoices immediately upon job completion with UPI QR payment links to cut average payment turnaround from 45 days to 7 days.
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View All ToolsHow to Use This Tool
Simple steps to calculate and verify
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1
Enter Opening Cash Balance Input liquid bank and cash balances at the beginning of the forecast period.
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2
Enter Monthly Cash Inflows Add customer receivables, cash sales, loan drawdowns, and investor funding.
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3
Enter Monthly Cash Outflows Add vendor payments, staff salaries, office rent, GST liability, loan EMIs, and overheads.
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4
Analyze Net Cash Position & Runway See whether you are cash-positive or burning reserves, and determine operational runway in months.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Profit Does Not Equal Cash A business can be profitable on accrual accounting while running out of cash because customer payments take 60 days to clear.
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Maintain a 3-Month Runway Buffer Keep at least 3 months of essential overheads (rent + payroll) in liquid sweep accounts to survive payment delays.
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Incentivize Early Customer Settlements Offer 2% cash discounts for payments cleared within 7 days to dramatically shorten your receivable collection cycles.
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Synchronize Vendor Payment Cycles Align accounts payable due dates right after your peak client receivable dates to prevent overdraft charges.
Frequently Asked Questions
Key concepts about business liquidity and cash flow forecasting.
What is the difference between Profit and Cash Flow?
Profit (accrual accounting) represents sales minus costs on paper, even if customers haven't paid you yet. Cash flow is the actual movement of currency into and out of your bank account. A business can be profitable on paper but go bankrupt due to negative cash flow.
How do delayed GST collections hurt small businesses?
When you issue a GST invoice to a B2B customer with 60-day payment terms, you must still pay the output GST to the government by the 20th of the following month in GSTR-3B. This forces you to finance the government's tax out of your own working capital.