Cash inflow and outflow is the process of tracking money coming into a business (inflow) and money going out (outflow). It’s an important part of bookkeeping, since businesses must keep track of all money earned, spent, and owed in order to understand how their finances are faring. Inflow comes from sales, debt repayments, investments, or other sources; while outflow is expenses such as payroll, rent, bills, and loans. Keeping track of these two elements helps businesses make informed decisions about spending, budgeting and long-term planning.