Mastering Cashflow Management

Jillian Flodstrom
2 min readJun 27, 2023


Cashflow management is a critical aspect of running a successful business, yet many entrepreneurs struggle with understanding and effectively managing their cashflow. In this summary, we delve into the key insights shared by financial expert David Safeer, who has dedicated his career to helping business owners navigate the complex world of cashflow. Safeer emphasizes the importance of distinguishing between profits and cash, provides practical tips for cashflow modeling, and highlights the significance of regular cashflow analysis.

Understanding Profits vs. Cash:

David Safeer challenges the common misconception that profits directly translate to cash availability. He asserts that businesses can be profitable on paper but still encounter cashflow issues. Safeer emphasizes the need for entrepreneurs to differentiate between profits and cash, as profits represent the excess of revenue over expenses, while cashflow refers to the movement of actual cash in and out of the business. By recognizing this distinction, business owners can adopt a more realistic approach to managing their finances.

Importance of Cashflow Modeling:

To gain a clearer understanding of their cashflow, Safeer advocates for businesses to engage in cashflow modeling. Instead of solely focusing on historical data, Safeer encourages entrepreneurs to project and forecast future cash movements. By doing so, they can anticipate potential challenges and devise proactive strategies to mitigate cashflow gaps. Safeer emphasizes the significance of projecting cash inflows and outflows on a weekly basis, allowing for more precise control and planning.

Simplifying Financial Concepts:

Safeer recognizes that financial jargon and complex concepts can hinder entrepreneurs’ ability to manage their cashflow effectively. To address this issue, he aims to explain cashflow management in plain English, making it accessible to everyone. By demystifying financial terminology and breaking down complex ideas into simple, actionable steps, Safeer empowers business owners to take control of their cashflow.

Weekly Cashflow Analysis:

Safeer stresses the importance of regular cashflow analysis, particularly on a weekly basis. This allows entrepreneurs to closely monitor the movement of cash in and out of their business, providing them with real-time insights into their financial health. By analyzing weekly cashflow patterns, business owners can identify trends, anticipate potential shortfalls, and make informed decisions to optimize their cashflow.

Optimizing Cashflow through Bank Accounts:

Safeer suggests that having multiple bank accounts can be beneficial for managing cashflow effectively. He recommends segregating funds into different accounts, such as accumulation accounts, known expenses accounts, and specialized accounts like a “Vault account.” This organization helps entrepreneurs allocate funds appropriately, ensuring they have the necessary cash to cover their obligations while maintaining a buffer for unexpected expenses.


Mastering cashflow management is crucial for the long-term success of any business. David Safeer’s insights provide valuable guidance to entrepreneurs seeking to improve their cashflow management practices. By understanding the distinction between profits and cash, engaging in cashflow modeling, simplifying financial concepts, conducting regular cashflow analysis, and optimizing cashflow through bank accounts, business owners can gain better control over their financial resources and navigate challenges with confidence. With Safeer’s practical advice, entrepreneurs can forge a path towards sustainable growth and profitability by harnessing the power of effective cashflow management.


Twitter: @David_Safeer

Instagram: @thecashmanproject

Youtube: @DavidSafeer




Jillian Flodstrom

👩🏼‍💼CEO of @fndinsurance 🎙️Host of Scale Your Small Business Podcast 💥I help individuals/small business owners protect their most important assets