What is the meaning of cash flow?
The amount of cash or cash-equivalent which the company receives or gives out by the way of payment(s) to creditors is known as cash flow. It gives a snapshot of the amount of cash coming into the business, from where, and amount flowing out.
Why it is important to manage Cash Flow?
Managing your cashflow is important because it can unlock value for your company and increase the reward to owners. It helps you mitigate risk, plan investment, and collect from accounts for which you have rendered services. It can give you insights into your company and help you make strategic decisions.
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