Category: Reports Author: DII Editorial Team

Owners often look at a healthy cash week and assume it proves current revenue performance. That shortcut can mislead.

Explanation

Cash received may relate to earlier invoices, deposits, or timing effects. Revenue belongs to the period in which the business actually earned it.

Real example

A customer clears several older invoices in April, making the bank balance look strong even though April trading was quieter than March.

What to do in practice

Review cash received and revenue together, but keep them separate enough to understand what really improved.

Keep moving

Read more in the article library, review pricing, or start managing this in DII Accounts.