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Cash Flow - the figure that business owners worry about the most; the amount of money coming into and out of the business, the revenue from sales and the expenditures of the business.
These cash inflows and outflows can be split into 3 categories:
A useful way to keep track of this money is by creating a cash flow statement and making projections based on previous performance.
You may have heard of the phrase in business: “CASH IS KING!” – this is absolutely true when it comes to CASH FLOW.
The reason it is so important: