Cash flow is the money that is moving (flowing) in and out of your business in a month although it does seem sometimes that cash flow only goes one way - out of the business - it does flow both ways cash is coming in from customers or clients who are buying your products or services.
A cash flow describes a real or virtual movement of money: a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecasted with cash. In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities. Cash flow is the net amount of cash and cash-equivalents moving into and out of a business positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges.
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In accounting, cash flow is the difference in amount of cash available at the beginning of a period (opening balance) and the amount at the end of that period (closing balance) it is called positive if the closing balance is higher than. Financing activities the financing activities section of the cash flow statement records changes in cash flow as they relate to the business's efforts to raise capital this section includes activities such as stock issuances, the repurchase of bonds, dividend payments, and loan payoffs.
Improve cash flow for your business today with a free trial of our web-based solution. The statement of cash flows is one of the main financial statements (the other financial statements are the balance sheet, income statement, and statement of stockholders' equity) the cash flow statement reports the cash generated and used during the time interval specified in its heading.