Calculating the cash flow for your business can be tricky. Here’s an acronym to remember – EBITDA. This stands for earnings before interest, tax, depreciation and amortization. Once you have figured out your EBITDA, it is time to subtract all those payments you have to make to keep your business running. This includes staff wages, insurance, tax, rent and special purchases. Once you have subtracted the cost of running your business from the amount of cash you have brought in, the result is your cash flow. Hopefully, it’s not a negative number!
