Cash flow is a story. Here's how to read it.

Profit is an opinion; cash is a fact. A cash-flow view tells you the story of money actually moving in and out — and stories have early warning signs.

Read it as in, out, and the gap

Money in from clients, money out to suppliers and staff, and the timing gap between them. Most cash crunches are timing, not profitability.

Watch the leading signs

Slowing collections, creeping stock, a lengthening gap between invoicing and payment. Each is visible weeks before it becomes a crisis.

The IBIS team

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