Overview
A Cash Flow Statement tracks the movement of cash in and out of your business each month. It provides a clear picture of your liquidity, showing how much cash is available to cover your expenses.
Why Cash Flow Matters
Predict Financial Needs:
By regularly reviewing your cash flow, you can anticipate if or when your business might run out of cash, allowing you to plan accordingly.Maintain a Positive Balance:
It’s crucial to keep your bank account balance positive at all times. Monitoring your cash flow helps you avoid overdrafts and ensures that your business can meet its financial obligations.Make Informed Decisions:
Understanding your cash flow empowers you to make timely adjustments, ensuring the ongoing financial health and operational stability of your business.
Learn More
If you’d like to learn how to read your projected cash flow statements in Projection Genie, check out our guide here:
How to Read Your Cash Flow Statement