Cash Flow Definition for Business | Related Information

Accounting Definitions

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Cash Flow Definition

Cash flow is the amount of money coming in or going out of a business.

Cash Flow Extended Definition
Cash flow constantly changes as money moves in and out of a business. It is measured by specifying a particular amount of time (e.g., a month).

During that time, all income minus liabilities is a business’s cash flow. It is important to track your cash flow carefully because cash flow indicates the available amount of funds your business has to use.

You can better manage your business’s cash flow by:

  • Projecting cash flow
  • Sticking to your budget
  • Increasing sales
  • Cutting costs

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Last Updated By

Christan Neff | Apr 12, 2023

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