What is Negative Cash Flow and How to Manage It

Author: External Author | | Categories: Accounting Services , Chartered Professional Accountant , Cloud-Based Accounting , Financial Controller , Financial Planning , Financial Statement Preparation , Full Cycle Bookkeeping , Payroll Service , Tax Planning Services

Blog by Priti Lad Professional Corporation

As a small business owner, you know firsthand how many obstacles you can face on the road to success. Ups and downs are inevitable and a critical part of any business that’s serious about growth. Even if you’re meticulous about financial forecasting, things can go wrong.

Negative cash flow is among the challenges your growing small business may face. Let’s say, one month, your business earns $5,000 in revenue but spends $10,000 on outgoing expenses. That’s an example of negative cash flow.

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Original Article Source Credits: quickbooks, https://quickbooks.intuit.com

Article Written By:  QuickBooks Canada Team

Original Article Posted on: NA

Link to Original Article: https://quickbooks.intuit.com/ca/resources/cash-flow/what-is-negative-cash-flow-and-how-to-manage-it