Cash surplus or positive cash flow is when cash flowing in from sales is more than the amount of the cash flowing out through expenses, salaries, other operating costs and for your personal use.

Cash deficit or negative cash flow occurs when the cash going out of your business is greater than the cash coming in. This can cause your business to come to a grinding halt and generally means trouble if it continues for an extended period of time. Negative cash flow can be a signal that you need to take measures to address the performance of your business.