Net cash flow

Net cash flow is the difference between all cash inflows and all cash outflows of a business:

net cash flow = cash inflows – cash outflows

Cash flow forecast example:

JanFebMar
Cash inflows
Sales£8,500£5,000£4,000
Rent received£1,000£1,000£1,000
Total inflows£9,500£6,000£5,000
Cash outflows
Wages£1,000£800£700
Raw materials£1,000£800£500
Marketing£200£200£200
Rent£1,500£1,500£1,500
Loan repayment£150£150£150
Total outflows£3,850£3,450£3,050
Net cash flow£5,650£2,550£1,950
Opening balance£0£5,650£8,200
Closing balance£5,650£8,200£10,150