Cash Flow

Cash Flow

1. Cash is vital for a business.

2. Cash is not just in notes and coins. It is money in the bank

3. You need money to pay for your business rent and pay the regular bills and staff wages monthly.

4. Cash Flow is the flow of money going in and out of a business.

5. Inflows is the cash that is flowing into a business.

   • For example, An inflow would be putting money into the business account from my own personal account to boost the business.
   • Another example would be if I took out a small business lown that would be an inflow.
   • Another inflow is the money that the business recieves from selling products or its services.

6. Outflows is the cash that is going out of the business.

   • An example of an outflow would be the money you have to pay out in staff wages.
   • Another example of an outflow is the money your business would pay in Telephone, Gas, Electricity and Rent bills.
   • Another outflow wouid be the cost of adveristment.
   • Outflows are the payments of the business that go directly to people or other business or companies.

7. Key Words:

   • Cash - Notes, Coins and Money in the bank.
   • Cash Flow - The flow of cash into and out of a business
   • Inflow - The cash flowing into a business in receipts.
   • Outflow - The cash flowing out of a business (Payments)