Cash flow refers to the money that flows in and out of a business. It is the lifeblood of any business, as it determines its ability to pay bills, purchase inventory, and make investments.
Positive cash flow occurs when the amount of cash coming into the business is greater than the amount going out, while negative cash flow happens when expenses exceed revenue. Understanding cash flow is crucial for any business owner, as it allows them to make informed financial decisions and manage their finances effectively.