Cash Flow

What is cash flow?

Cash flow refers to the movement of cash into and out of a business over time.

Why is cash flow important?

Positive cash flow ensures a business can pay expenses and operate smoothly.

What are types of cash flow?

Types include:

• Operating cash flow

• Investing cash flow

• Financing cash flow

What is positive vs negative cash flow?

Positive cash flow means more cash enters than leaves. Negative means the opposite.

How do businesses improve cash flow?

They improve cash flow by increasing collections, reducing expenses, or managing payment terms.