{"id":300261,"date":"2026-01-14T11:00:43","date_gmt":"2026-01-13T23:00:43","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=300261"},"modified":"2026-01-12T11:09:54","modified_gmt":"2026-01-11T23:09:54","slug":"cash-flow-types","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/cash-flow\/cash-flow-types\/","title":{"rendered":"Guide to Understanding Cash Flow Types for Your Business"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.5″ header_2_font_size=”32px” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

As a business owner, profit is a priority, but so is keeping your business running through cash flow. Cash flow dictates whether you can pay your wages<\/a>, BAS, suppliers, and the ATO on time. That\u2019s why your cash flow statement is just as important as your income statement and balance sheet: they\u2019re the primary financial statements that matter most.<\/p>\n

Cash flow is broken down into three components: operating, investing, and financing activities. These different types of cash flow help you better manage your company\u2019s financial health and spot future challenges and operating pressures.<\/p>\n

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How cash flow is different from profit<\/h2>\n

[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/01\/Cash-inflows-and-outflows.png” alt=”cash inflows and cash outflows” title_text=”Cash Inflows And Outflows” align=”center” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

Under accrual accounting principles, your income statement keeps a record of sales revenue and operating expenses whenever they\u2019re earned or incurred \u2014 not when cash payments actually leave or hit your bank account. What that means is that net income (or net profit) can look strong even while your cash balance is under pressure.<\/p>\n

Cash flow refers to real-world cash transactions over a given period:<\/p>\n