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Wednesday, March 12, 2014

What the Heck is Cash Flow?!

Cash flow is cash that streams into and out of a person's or company's account over a period of time.
 There are various reasons for this cash flow such as wages, salary, sales, loans, revenue, and expenses. If you subtract your cash outflow from your cash inflow you will get your Net Cash Flow, which could either be negative or positive. For example, If you have more money coming into your account than going out, you have a positive Net Cash Flow. However, if more money is leaving your account than coming in you have a negative Net Cash Flow. Net Cash Flow is also considered to be a sign of a person's or a company's financial health.

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