Definition: The movement of money in and out of a business and the resulting availability of cash.
Also Known As: Proforma
Examples: Cash flow is calculated by adding net after-tax income plus any bookkeeping expenses that result in items being deducted but not paid out in cash.
If you are starting a new business and writing a business plan, don't worry if the cash flow is negative for several months. It is the cash balance that should not go below zero because that would be the same as having a negative balance in the checking account.
If you are starting a new business and writing a business plan, don't worry if the cash flow is negative for several months. It is the cash balance that should not go below zero because that would be the same as having a negative balance in the checking account.
