Accounting

    Cash flow

    The net movement of cash into and out of a business over a period.

    Definition

    Profit ≠ cash flow. A trade can be profitable on paper but cash-poor if customers pay slowly. Track inflows (paid invoices) vs outflows (payroll, materials) weekly.

    Related terms

    Accounts receivable (AR)

    Money customers owe you for invoiced but unpaid work.

    Cash-basis accounting

    Recording income when cash is received and expenses when cash is paid.