Cash Flow Definition
What is cash flow? Cash flow is the total amount of money that is moving in and out of your business. This includes all of the money that you bring in from sales, as well as any money that you spend on expenses.
Why is cash flow important? Cash flow is important because it allows you to see how much money your business is making (or losing) at any given time. This information can help you make decisions about where to invest your money, or how to cut costs if your business is not doing as well as you had hoped.
How do I calculate my business’s cash flow? There are a few different ways to calculate cash flow, but the most common method is to subtract your total expenses from your total revenue. This will give you your net cash flow for a certain period of time (usually one month or one year).
What are some things that can affect my business’s cash flow? There are a number of things that can affect your business’s cash flow, including seasonality, changes in customer spending habits, and unexpected expenses.
