What is cash flow?

Cash flow is the movement of money into and out of a business over a period of time. Positive cash flow means more cash is coming in than going out, while negative cash flow means expenses exceed incoming cash.

Example: A business receives customer payments totaling $20,000 and pays $15,000 in expenses during the month, resulting in positive cash flow of $5,000.

Related terms: Cash Flow Statement, Burn Rate, Working Capital, Liquidity