Cash Flow

Cash Flow is the total amount of cash received and spent by a business. There is almost always a defined period of time tied to a cash flow report. Individual projects may even have their own cash flow statements, helping businesses see where their cash is going.

Companies regularly use cash flows to figure out where the gaps are in their liquid position. Due to this, the total cash flowing in or out matter exclusively. In other cases, cash flows are seperated for ease of reading and understanding on statements.

Cash flows consist of several different types of flows, including;

- Operational: This follows the expenditures and receivables for your companies core business
- Financing: Cash flows resulting from financial activites (ie. paying loans, issuing stock, paying dividends)
- Investment: Cash flows resulting from making capital expenditures, like buying new equipment, or aquisitions