In business, revenue makes you feel like you’ve “made it.”
Profit looks good in reports.
But cash flow? Cash flow is what decides whether you sleep peacefully at night… or you’re up at 3 am scrolling your bank app like your life depends on it.
The Harsh Reality of Revenue vs. Cashflow
Big revenue brings big promises and a shiny reputation. But when rent is due, staff are waiting for their salaries, and taxes are due, you quickly realize one thing:
-Revenue is a vanity metric.
-Profit is a delay tactic.
-Cash flow is the reality check.
You can close 10M in sales this month. But if 8M is still pending in receivables and 2M went straight to suppliers, you’re not thriving, you’re surviving.
And here’s the hardest part: from the outside, people think you’re doing well. But inside, you know the struggle of juggling bills, payroll, and KRA while waiting for payments to clear.
The Hidden Cost: Founder Burnout
Most founders don’t burn out because they aren’t making money.
They burn out because the business eats first and feeds them last.
You look successful on the outside, but inside, you’re suffocating. And it’s not the lack of ideas, hard work, or clients that breaks you , it’s the constant pressure of poor cash flow.
If your company can’t survive 30 days without a miracle sale, you’re not running a business, you’re sprinting on a treadmill, sweating to stand still. That’s why so many promising founders give up, not because they lack customers, but because they lack control.
How to Protect Your Cashflow
Cash flow is the CEO’s blood pressure; proper accounting is the check-up that keeps you alive. Here’s how to protect it:
1. Stay on top of invoicing
Invoice immediately, track payments, and follow up. Accounting systems like Zoho Books or QuickBooks keep you on schedule.
2. Separate business and personal finances
Use a dedicated business account or M-Pesa till. This not only keeps cash flow clear but also makes tax reporting easier.
3. File taxes on time
Late returns attract penalties and interest that eat into your cash flow. Keep reminders for PAYE, VAT, corporate tax, and statutory deductions.
4. Keep proper records
Every expense and income should be recorded. This protects you in case of a KRA audit and helps you see your true cash position.
5. Forecast your cash flow
Work with your accountant to project 3–6 months ahead. Know when VAT is due, when staff payments hit, and when receivables are expected.
6. Build a tax and cash buffer
Always set aside a portion of your income for taxes and at least a month's worth of expenses for emergencies.
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