Understanding Cash Inflow and Outflow and Why They Matter

A financial report is often used by lenders, investors, and government agencies to see how your business decisions have panned out. Cash flow does not include what is there in the bank and the credit from suppliers. Cash flow is simply a measure of the cash that is entering your business or leaving your business during a certain period. Business cash flow is important to understand because important people such as investors and bank lenders use it...