Cash Flow

cash flow

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  • Created by: megan
  • Created on: 16-05-14 13:52
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  • Cash Flow
    • Definition
      • the money that goes into and out of the business e.g. rent, revenue
    • Improvement
      • reduce costs
      • Trained staff who are experts in forecasting
      • increase revenue
    • Importance
      • new businesses are often given shoter credit periods
      • help persuade lenders to give money
      • good to plan as start ups are risky can get aid if needed
    • Limitations
      • mistakes can be made
      • unexpected costs e.g. tech failure
      • wrong assumptions in estimations
    • parts
      • 1) cash inflows
        • 2) cash outflows
          • 3) net monthly cash flow and opening/closing balance

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