Financial Inputs
Enter annual or monthly figures.
Operating Cash Flow
$0
Healthy Conversion
Difference vs Profit
+ $0
Cash Flow Bridge
Bars show the impact of each component on your final cash position.
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Analysis
Calculating...
Mastering the Gap
Profit is an opinion; cash is a fact. Understanding the delay between earning revenue and receiving cash is critical for New Zealand businesses.
The Formula
OCF = Net Income
+ Depreciation
- Δ Receivables
- Δ Inventory
+ Δ Payables
+ Depreciation
- Δ Receivables
- Δ Inventory
+ Δ Payables
Accrual accounting records revenue when you send the invoice, not when the money hits your account.
Depreciation (+): Non-cash expense added back.
Receivables increase (-): Cash not collected yet.
Inventory increase (-): Cash spent on stock.
Payables increase (+): Cash conserved by paying later (temporarily).
GST: Bank movements include GST; profit often doesn’t.
Provisional tax: Lumpy cash outflows — use OCF to test if trading cash can cover tax dates.