Cash Flow

Overview

Cash flow represents the money moving into and out of the business, and is crucial for assessing its liquidity and its ability to fund its activities.

Common Use Cases

• Analysing profitability.
• Anticipating financing needs.
• Optimising cash management.
• Making investment decisions.

Examples in Small Businesses

• Tracking monthly cash inflows and outflows.
• Identifying periods of tight liquidity.
• Adjusting budgets based on cash projections.