What Is Cash Flow, and Why Is It Important?

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If managing a business requires you to think on your feet, then making a business grow requires you to think on your toes. One key financial aspect of ensuring business growth is understanding proper cash flow. But cash flow can be complicated and can lead to detrimental business decisions if you don’t utilize it properly. That’s why it’s important to understand what cash flow is, the elements and types of cash flow, how it works and what you can do to watch it increase.

When you know the full scope of the money coming into a company and the money going out, you’re better equipped to change the strategic direction of the business. Strategic decision-making can mean the difference between expanding a business or shutting its doors.