Cash Flow

In layman’s terms, a cash flow is the total amount of money, either liquid or virtual, that is going in and out of a company, by means of legal business transactions. A cash flow helps a business understand where they stand in terms of usable and disposable cash in the business. A cash flow is also good for tracking the amount of transactions a business is making in a year, and one can use this data to assess the position of the business and see what they can do to make it better and more profitable.