Business and investment is all about flow of money. Money as the agency of selling and buying keeps in constant motion. At any particular time some money comes into the register, and some money goes out to pay for expenses. This motion is akin to a flow, and it merely determines the rate of accrual or disbursal rather than total asset collection. In finance, cash flow means cash being received and spent by an organization during a defined period of time, and in some instances tied to a specific project.
Efficient management of smooth cash-flow is important to a business as it is critical for future projections to arrange for employees salaraies and creditors to be paid at appropriate times. So far as calculating the status of cash flow is concerned, the money actually collected is counted; the money expected to come, or promised, is discounted. The Cash Flow statement is very crucial to determine the financial health of the business concerned.
Cash Flow determination is a complex exercise which is, however, very essential. We provide a list of links to companies providing consultation regarding your Cash Flow estimates under this section of the web directory.