Raises your balance
- Money received when you make a sale (only the part actually paid)
- A customer paying off what they owed
- Extra income
- Money the owner or an investor adds, or a loan received
Lowers your balance
- Money you pay a supplier, including the amount paid when goods arrive
- Expenses and salaries once approved
- Refunds paid to customers
- Money the owner takes out and loan repayments
Does not change your balance
- The unpaid part of a sale - nobody has paid yet
- Buying goods on credit - until you pay
- Damaged or lost goods - a loss to your profit, but no cash moved
- Moving money between your own accounts
- Using loyalty points - that is a discount, not a payment
Does adding stock reduce my balance?
Only by the amount you actually pay. The goods are added in full either way. Pay everything and your balance falls by the full cost; pay nothing and it does not fall, but you now owe the supplier.