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Home Definitions

What is Cash Flow? Definition or Meaning

Posted by Bizversity

As a business owner, you need to understand how your cash balance is changing in terms of the money coming in and going out. You can project your cash flow or examine it retrospectively.

For example…

You may feel confident about how much money your business is earning each month, but income only tells part of the story. If the costs of employing staff, renting premises, paying bills and purchasing stock amounts to more than your profits, you have a negative cash flow.

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