What is Cash Flow? — Managing money flows
Cash flow is the movement of money in and out of a business. Positive flow means more money coming in than going out — and vice versa. A business can be profitable on paper but fail due to negative cash flow.
Definition
Cash flow is the movement of money in and out of a business. Positive flow means more money coming in than going out — and vice versa. A business can be profitable on paper but fail due to negative cash flow.
Details
Three types: operating (from business activities), investing (buying/selling assets) and financing (loans, contributions). Most common cash flow issue in MK: long collection periods (30–90 days). Levka helps you track overdue invoices and receivables.
Example
January: inflows 500K (collected invoices) − outflows 400K (salaries, rent, purchases) = positive cash flow +100K MKD.