Cash Flow

Cash flow refers to the movement of money in and out of a business over a specific period. It includes all cash received, such as sales revenue and loans, and all cash paid out, like expenses and purchases. Positive cash flow means more money is coming in than going out, allowing the business to operate smoothly and invest for growth. Negative cash flow indicates the opposite, which could signal financial trouble if it persists. Monitoring cash flow helps business owners ensure they have enough cash on hand to cover day-to-day operations and strategic plans.