Cash flow means how money comes in and goes out of a company. If money is coming in faster than it is going out, your organization has positive cash flow and the reverse means negative cash flow. You can get cash inflows through sales, investing or financing, but you use the cash on things like paying rent, salaries and repaying loans. It is important to watch cash flow to support liquidity, ensure bills are paid and support the company’s operations. Profitable companies may still encounter difficulties if their cash flow is managed poorly which is why it matters so much to financial health.
Read us: what is cashflow
Read us: what is cashflow