What Is Cash Flow—and Why Is It So Hard to Manage?

Ever had money “on paper” but still struggled to pay your bills? That’s a cash flow problem—and it’s one of the most common issues small-business owners face.

Here’s what cash flow really means, why it’s hard to manage, and how to fix it using modern bookkeeping tools.

What Is Cash Flow?

Cash flow is the movement of money in and out of your business.

• Positive cash flow means you have more money coming in than going out

• Negative cash flow means expenses are eating up your available cash

It’s not just about profit—it’s about timing. You can be profitable and still run out of cash if clients pay late or bills stack up.

Why It's So Hard to Manage

Common causes of cash flow struggles include:

• Clients paying 30–60 days after invoicing

• Large seasonal expenses or inventory buys

• Payroll timing mismatched with income

• Not tracking recurring subscriptions or auto-billed services

• Forgetting GST/HST payments and CRA remittances

Without regular check-ins, it’s easy to lose sight of what’s actually available in your bank account.

Indigenous Business Tip

If you run an Indigenous business or council-funded program, cash flow affects:

• The timing of grant disbursements

• Your ability to meet reporting deadlines

• The trust you build with funders and community leaders

Tracking program-specific cash flow helps show accountability and avoid shortfalls.

Tools That Can Help

Modern apps make cash flow easier to monitor and forecast:

• QuickBooks Online offers basic cash flow visuals and reports

• Float, Helm, or Dryrun are Canadian tools that forecast future cash needs

• Clearbook’s virtual bookkeeping team uses these tools to help clients plan weeks or months ahead

Start by checking your bank feed and overdue receivables every Monday—just 10 minutes can make a difference.