Statement of Cash Flows

(last update 10/10/2009)

Cash Flow Management

What is Cash Flow

Cash flow is the movement of money into and out of your business that determines your business’ solvency. Budgeting for future cash flow will help you to understand whether you will have enough funds in the business to pay creditors.

Cash is the lifeblood of a small business. A business can sustain itself for a short time without sales or profits, but without cash it will die.

Cashflow is essential in ensuring a business survives and prospers, and is the primary indicator of business health. For this reason the inflow and outflow of cash need careful monitoring and management.