I read a lot about the definition but I can’t really get the hang of it.
Is it the cash that the company is left with at the end of the period? (Meaning the cash in their bank accounts *hypothetically*)
In: 14
Literally what it sounds like. The flow of cash into and out of a business.
It’s important to understand your business’s cash flows because your business will make a lot of purchases and sales on credit with a promise to pay later rather than immediately. You need cash to pay expenses, and you need to know when you’ll be able to collect payment for your work.
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