You're way off. Cash flow is about flow and timing: Factors like how fast you pay and how fast you get paid are vital, but you know nothing of that by just knowing the sales, costs and expenses.
I've done a 20-minute free video for you, online, that will explain how cash flow works. Please take a look at http://timberry.com/videos/. It's vital, too. Take the time to get this right, or bring on a team member, because cash is what runs your business.
Tim Berry is the president of
Palo Alto Software Inc., which produces the industry's leading business planning software, Business Plan Pro, as well as other popular planning applications for businesses.
