Reading Your Cash Flow: A Founder's Quick Guide

Profit and Cash Are Not the Same Thing

It's possible to be profitable on paper and still run out of cash — invoices unpaid, VAT due, payroll around the corner. Understanding the difference is one of the most important financial skills a founder can build.

Three Numbers to Watch Every Week

• Cash on hand — what you actually have available right now

• Runway — how many weeks or months that covers at your current burn rate

• Receivables aging — how much is owed to you, and how overdue it is

Building a Simple Rolling Forecast

A 12-week rolling cash flow forecast, updated weekly from your actual bookkeeping and receivables, gives you an early warning system for tight months well before they arrive — enough time to chase invoices, delay non-essential spend, or arrange financing calmly instead of urgently.

Where This Fits Into the Bigger Picture

Cash flow visibility is the foundation that outsourced CFO support builds on: forecasting, budgeting, and financial planning all start from an accurate, current cash position. If you don't trust your cash flow numbers today, that's the right place to start.