Cash Flow Accounts are specialized financial accounts that record and track the cash flow of a business. They provide a snapshot of a company’s liquidity and its ability to meet short-term commitments. This includes tracking day-to-day operations such as payments for bills, invoices received for goods and services, payroll deposits and withdrawals, and transfers between accounts.
Cash Flow Accounts help a business know what its actual cash position is on any given day, enabling it to make informed financial decisions that will keep it profitable and successful.