how does the cash flow buisness work?

Answer 1

Every business has "cash flow".
Think of ones own check book. One has an income and expenditures.
The difference in ones personal finances compared to a business, is the a wage earner knows how much money is coming in each week or month. A business can only "estimate" how much cash will be received from sales. That is an unknown factor.
So, in projecting "cash flow", a couple things must be considered. There may be "Accounts Receivable" which can/should be collected, or if scheduled payments have been set, one will know how much to expect from those.
Also, from past history of a business, one can reasonably expect an estimated amount of sales.
These estimates can be used to project "cash flow" over a period of future months. With that, one must plan future expenditures, IE, purchases, wages, fixed expenses, such as rent, utilities etc.

Flexibility is the important factor and the plan must allow for adjustments in case of less cash flow.

Answer 2

Cash flow is the real flow of money in a company... can you restate the question? What exactly do you need to know? Do you want to know how to compute it?
The definition can be: Measure of the actual cash generated by a business rather than the accounting profit. Typically pre-tax profit plus depreciation, amortization and other non-cash charges, for the UK. For the US, net income plus depreciation charges

Answer 3

Well, you begin by purchasing a few cash cows and put them out to pasture underneath some money trees. Water them with coins everyday and before you know it there will be a big rain shower. When the rain stops you will see a big and beautiful rainbow across the pasture. Go to the end of the rainbow and you will find a pot of gold. And they lived happily ever after--well, until the government taxed them and taxed them and they lost the farm. The End

Answer 4

It works at a speed you have inflow and the style hou u chanalise
the outflow.