Difference between cash flow & revenue

Cash flow and revenue are very necessary for a small business as it shows the health status. Cash flow & revenue both are different so never take both of this as equal. Revenue shows how the business performs and sales

its products while at the same time cash flow shows the capability of a business to turn revenue into cash for funding the operational costs.

Let’s discuss in detail the difference between cash flow & revenue:

Cash Flow

Cash Flow shows the total amount of money infused in the business from sales, investments, loans or other sources. It also shows the amount of money exhausted in the form of expenses. Cash flow & profit both are different. Cash Flow report prepared to find out from which source the operating expense and other office expenses got funded.

Revenue

Revenue is the total amount f cash earned from its sales. Revenue is different from profit as profit is the total amount earned after deducting expenses.  It shows the performance of the sales department as well as business performance.

To read more about cash flow & revenue visit: CashFlow

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