Cashflow may be the cash that is moving (flowing) inside and outside of the company in 30 days. It does flow both ways although it does seem sometimes that cash flow only goes one way – out of the business.
- Money is originating in from clients or customers who will be purchasing your services or products. Some of your cash flow is coming from collections of accounts receivable if customers don’t pay at the time of purchase.
- Money goes from the company in the shape of re re payments for costs, like lease or home financing, in month-to-month loan payments, as well as in re payments for fees along with other reports payable.
Think of ‘cash flow’ as a photo of the company account that is checking time. If more cash is coming in than is certainly going away, you’re in a “positive cash movement” situation and you also have sufficient to cover your bills. Continue reading “Cashflow – How It Functions to help keep Your Organization Afloat”