Money Cash Flow, or MCF, is defined as the net amount of cash and cash-equivalents acquired through a business’ operating activities, investments, and financial transactions over a given period of time. In layman’s terms, it’s simply the money coming into a business minus the money going out.

It’s important to understand that when evaluating your MCF, it’s not enough to simply look at daily transactions. You have to look at the bigger picture: all your revenue sources, from customers and vendors to investors; all your outgoing payments, from operational expenses to taxes; and all other inflows and outflows. Only then can you get an accurate glimpse into the overall financial health of your business.