The healthiest cashflows won’t have large swings between different months and will either stay the same or show a trend (income growth or cost saving for example).
If your cashflow is unhealthy, you may see wild swings in all your cash for a term or season. This could be because you take all registrations or memberships within one month and then a uk rcs data comparatively small amount over the subsequent months. Sometimes, this can’t be avoided due to seasonal variations. But if you have a consistent base level of income and cost each month, you’ve got a healthy cashflow.
In small organisations, removing risk is crucial. A healthy cashflow, where consistent cash comes in each month removes the pressure of having a small number of days where all your cash should come in.
To put that into perspective, imagine you’re running your gymnastics club where you bill people based on 3 terms per year. That means there are 3 dates across a 12-month period where you expect to receive your whole years’ worth of cash.