Cash flow refers to the movement of money into and out of a business, crucial for maintaining financial health. Positive cash flow indicates that a company has more incoming cash than outgoing, enabling it to meet obligations, invest in growth, and manage unforeseen expenses. Effective cash flow management involves tracking revenue and expenses, forecasting future cash needs, and optimizing accounts receivable and payable. By ensuring that cash inflows exceed outflows, businesses can avoid liquidity issues, sustain operations, and capitalize on opportunities. Properly managing cash flow is key to long-term success, providing the stability needed for strategic planning and operational efficiency.
Cash Flow or Cashflow-What it is and Key To Business Success