- Cash flow is the movement of cash in and out of a business over a period of time.
- It must be effectively managed to ensure payments are made and received without creating a cash flow problem.
- If more money goes out than comes in or if money must be paid out before cash payments have been received, there is a cash flow problem.
- Matching cash flow in with cash flow out is essential.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.