As a small business owner, you need to balance income with your expenses. When you track patterns in your spending and earnings, you are looking at your business’s cash flow. Sometimes, your cash flow is negative. What is negative cash flow?

Cash flow explained

To understand negative cash flow, you first need to have a grasp on the idea of cash flow. Cash flow measures what goes in and out of your business during a certain period. For a healthy cash flow, you need to be able to match changes in income with outgoing expenses.