Cashflow is the money that is moving in and out of your business in a month. It may seem like sometimes the cash is only flowing one way – out of the business – however it does flow both ways.
Cash is coming in from customers or clients who are buying your products or services. If the customers don’t pay at the time of purchase, some of your cash flow is coming from collections of accounts receivable.
Cash is going out of your business in the form of expense payments, like rent, mortgage repayments, monthly loan payments, and payments for taxes and other accounts payable.