 Hello everybody today. We are here again with near-early about How to manage the cash flow in your drop shipping business and what is the cash flow? We decided to create this video after the very very very Successful video which we released a few days ago about the PayPal reports and how to work with them and why we need them So today near will show you the next step in the finance management for our drop shipping businesses Enjoy. Hey Neil. Hi guys Thanks, Leo so As Leo said hi, my name is near from my profit and Today I want to talk to you and discuss about positive flow of cash I call it the subject flow of cash because it Divided to two direction positive flow and negative flow and today I want to focus on the positive flow The the positive flow of cash Means every transactions that come into your business That means all the amount of all the money that defines your monthly revenue So basically there are three sources of a positive flow of cash And I want to talk to you guys about them. The first one is a PayPal all the payments from the Customers the second one is a PayPal again That's all the positive fees in case of a refund to your customer We talked about it in the previous video video I will show you the numbers again And the third one is the credit card or any other way that you pay your suppliers Because in cases of refunds your suppliers pays you back and the best way you can see it is in your credit card In your credit card monthly files So first I want to open together again the PayPal report and drill down to the data And I will show you the most important Numbers that we should See together. So just let me share my screen So I want to show you again Two important numbers that we talked about it in the previous video if you remember I put it in a green remark The amount received please I want you to take this notice and to write down the numbers so you can understand the example there perfectly So the first number is in the amount received. We've got from our customers 1,560 euro. This is the amount received the second one from PayPal is in column G Refunded fees. This is the refunded fees that PayPal gave us back in cases of refund and it's The amount is 50 euro. So this is the two numbers that you should write down and remember So now I want to take you to the third source third source is Credit card and I want to you I want to show you how you can sort the data Just let me share my screen and I will drill down to the numbers Okay, so there are all kinds of credit card the download Excel I will show you a mine. It's the differences are minor. So there are five Columns we see here the date we see in the column see the name of Suppliers the name of business that you paid money for and the amount of money So you have to remember that there are two kinds of sellers There are two options. Maybe you just use your card only for to buy a From suppliers like Amazon like Aliexpress and there are options, of course that you use your the credit card personally This is why there is a potential of a big noise in this credit card And we have to know how to sort the data in a perfect way So first we're gonna take the first row and to filter it You go and to the Excel file you touch You click the data and filter it. Why do it? I will explain it to you I want to find all the negative number Why is that because the negative number represents all the money that your supplier gave you back So I will go to the filter. I will click number of filter less than Zero I click enter and then I see all the red numbers are negative number This is the first step you can see these are all negative number the first step I will go to column C and I will sort it by a to Z This the reason that I'm doing it because I want to Gather together all the name of businesses because I want to look for something suspicious It's it's not my supplier in this case I work only with the Amazon and with Aliexpress and When I drill down the numbers I see suspicious line here. This is not This is my name. This is a Personal payment that I pay so it's not Amazon. It's not Aliexpress. I will delete it right away That's it. Now. I will look for another suspicious row. I see none. So everything is clear Everything is good. So the only thing that is left is to take all the numbers and to calculate it together to make a sum I will sum all together and I see it is 594 euro, I will write it down 594 euro and that's it I will mark it in a green color and that's it now. We have three numbers and we can Calculate it together. It's 594 and we go back to the PayPal. It's two numbers. It's 1560 from the paper a month received and the 15 15 euro from the fees and After we add it together the result is 2169 euro. So basically, this is the only way to calculate the revenue This is your real revenue of the store of your business. So Basically, that's it Leo. This is the summary of the Flow cash of in a positive way. This is how I do it every month. I don't know another way to do it and That's it Great. I think that we can also do another video later about how to Organize all this together and like Excel files hosting like this So I think it will be like a set of videos Great. Thank you very much, Leo. I will put a link to Your system here under the video of my profit so people can also check the description and see our system and there We will also attach a blog post when we will create about this topic. So see you in the next videos Thank you very much for being here today. Thank you. Thank you guys. Bye. Bye