when the cash balance equal net cash flow for startup business?

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Meaning:Startups means when company is in first stage of operation and founded by one or one more enterpreneur to develop a unique product.

Dealing with cash flow issues is most difficult when you are starting a business. You have many expenses and money is going out fast . Cash flow is fancy term mony moving in and out of your business every month.

Cash flow is life blood of business and helps up in startups predict whats going to happen and ensure it will have enough cash to survive.

For start-up , the opening balance is zero. As soon as investment funds are added to the bank, then the cash flows begin. Remeber that the opening balance in any one month should equal the closing balance at the and of previous month

For Example

	January	February	March
Cash Inflow
Investment	10000	0	0
Credit Sale	2500	10000	15000
Total inflow	12500	10000	15000

Cash Outflow
Marketing expenses	500	500	500
Equipment	1000	1000	1000
Net cash flow	11000	8500	13500

Opening Balance	0	11000	19500
Closing Balance	11000	19500(11000+8500)	33000(19500+13500)

Conclusion: From Above example we can see clearly Cash balance and net cash flow are equal in the very first period of cash flow because there are no opening balance to reflect

jeff jeffy answered 1 year ago

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when the cash balance equal net cash flow for startup business?

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