Cash flow is the total amount of money being transferred into and out of a business esp. as affecting liquidity.
The basic elements of cash flow are: - Starting cash -- This is your starting balance -- what you have on hand at the beginning of each month.
- Cash in -- This is all cash received during the month, including sales, paid receivables, interest or cash from sales of assets or stock.
- Cash out -- Includes all fixed and variable expenses.
- Ending cash -- This is your ending balance. Add starting cash to cash in for total cash, then subtract cash out.
|
|
No comments:
Post a Comment