What is Cash Flow?
The actual money moving in and out of a business over time.
Cash flow is the timing of money — when it actually lands in and leaves your bank account. A business can be 'profitable' on paper and still die because it ran out of cash while waiting for a client to pay an invoice.
'Positive cash flow' means more is coming in than going out. 'Negative cash flow' means you're bleeding, and the clock is ticking regardless of how good the business looks on paper.
The startup graveyard is full of profitable companies that ran out of cash. Watch this number like your business depends on it, because it does.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.