Plain-English guide

Self-employed cash-flow guide

Profit and cash are not the same thing. A useful cash-flow view starts with money available now, then considers protected amounts and payments that are coming up.

Published and reviewed by the LedgerlyPro team · 23 August 2026

Step 1

Start with a dated business balance

  • Use the latest reliable balance for the business accounts you include.
  • Label statement balances with their update date when they are not live feeds.
  • Check overdrafts and negative balances rather than treating them as zero.
Step 2

Protect money before spending

  • Estimate tax from current records and assumptions.
  • For VAT-registered businesses, consider the estimated net VAT position rather than all VAT received.
  • Remember that a protected amount is a recommendation, not money physically moved.
Step 3

Look ahead

  • List bills and committed payments due soon.
  • Follow up overdue invoices with clear, professional communication.
  • Use conservative assumptions where information is incomplete.
Step 4

Review changes, not just totals

  • Revisit the plan when income, expenses or transaction categories change.
  • Investigate uncategorised transactions that may alter the result.
  • Discuss major decisions with an accountant or regulated adviser where appropriate.

Continue your research

For current UK tax rules and record-keeping requirements, check official HMRC guidance or speak with a qualified accountant.

HMRC self-employed records guidance