So what is cash flow exactly? Why is it important for your business? And how can you ensure that it is managed successfully?

What Is Cashflow?

Put simply, cash flow is the moving of money in and out of your business. Cash flow comes in from customers who are purchasing your goods or services, money from investors, investments and so on. Cash flow comes out from wages, rent, payments, taxes etc. A positive cash flow means you have more cash coming into your business that there is flowing out. Negative cash flow means there is more cash flowing out rather than in.