Business

Cash flow is the movement of money into or out of a business, project, or financial product.

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  • Created by: Raccoons
  • Created on: 11-02-13 13:52

Cash Flow

Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.

 Receipts- All the money that is coming into the business eg. Selling goods or services.

Outflow- This will written on your cash flow as specific cost  eg. Rent, raw materials

Net cahflow- Total payments minus the money going out.

Opening balance- The closing balance from last month.

Closing balance- Net cash flow + opening balance.

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Finances

Internal

Personal Savings- The owner may want to invest his/her own money.

Retain Profits- The owners may decide to re-invest profit made.

External

Overdraft- Allows you to borrow more money than you own from the bank (short term)

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