What cash flow is and why revenue is not profit
Photo: Avila Ops Tecnologia
Cash flow records all money entering and leaving the business on actual receipt or payment dates. Revenue is total sales. Profit remains after all costs. Cash is today’s bank balance. These three figures differ, and confusing them costs most in December.
Good months blur them. You sell R$ 40,000 in December and feel you have R$ 40,000. But some is installment card sales, some boleto clearing within three business days, and some already belongs to suppliers, thirteenth-month salary, and January tax.
Why can high sales leave no money?
Sales and receipts happen on different dates. R$ 10,000 in installment card sales on December 15 arrives installment by installment, or you pay early-settlement fees, according to the terminal contract.
Profit is calculated, not seen. Total all costs, including hidden terminal fees, shipping, and returned products.
A bakery takes R$ 18,000 in Christmas orders and spends R$ 14,000 on ingredients, packaging, and helpers: R$ 4,000 remains. But half is paid by Pix at pickup on December 24. Until then it bought everything from its own cash. Without reserves, three weeks in the red precede R$ 4,000 profit.
How do I track cash without becoming an accountant?
No accounting system needed: three columns, date, amount, in or out. A spreadsheet suffices initially. Enter actual dates, not sale dates.
After a month you know weekly inflows and monthly fixed outflows. The difference is your cushion. If small, a good December will not save a weak January.
Next stop typing: when store, Pix, and CRM enter automatically, cash becomes a figure you check. It heads Year-end closing: five figures on one screen. Delinquency means sales exist but cash does not.
What to do now
Open monthly statements and terminal receivables schedules. Mark received sales, pending sales, and money already committed. Five self-updating figures on one screen: avilaops.com/sistema-para-pequenas-empresas or WhatsApp: wa.me/5517997811471.
Frequently asked questions
Is cash flow the same as an income statement?
No. The income statement (DRE) shows period profit. Cash flow shows actual daily account money.
Do I need an accountant for cash flow?
No. Accountants handle taxes; cash flow is your management task in spreadsheets or systems.
Are billing and revenue the same?
In everyday usage, yes: total period sales. Differences are technical.
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