@accounting.knowle8: Cash flow management is all about tracking how money moves in and out of a business so you always have enough cash to operate smoothly 💸 📊 What is Cash Flow? Cash flow = Cash Inflows − Cash Outflows Inflows: Sales, investments, loans Outflows: Rent, salaries, inventory, bills 🧮 Basic Cash Flow Calculation � ✅ Example Calculation Let’s say a small business has: Cash from sales = ₦500,000 Loan received = ₦200,000 👉 Total inflow = ₦700,000 Rent = ₦150,000 Salaries = ₦300,000 Utilities = ₦50,000 👉 Total outflow = ₦500,000 📌 Net Cash Flow: = ₦700,000 − ₦500,000 = ₦200,000 (positive cash flow) ✅ 🔄 Types of Cash Flow 1. Operating Cash Flow 🏪 Money from daily business activities 👉 Sales – Operating expenses 2. Investing Cash Flow 📈 Money used for assets 👉 Buying equipment, property 3. Financing Cash Flow 💳 Money from loans or investors 👉 Borrowing, repayments 📉 Cash Flow Statement Format Category Amount (₦) Cash Inflows 700,000 Cash Outflows 500,000 Net Cash Flow 200,000 ⚠️ Why Cash Flow Management Matters Prevents running out of cash 🚫 Helps pay bills on time Supports business growth Avoids unnecessary debt 💡 Simple Tips to Manage Cash Flow Track income & expenses regularly 📘 Reduce unnecessary costs ✂️ Speed up customer payments ⏱️ Keep a cash reserve 🏦

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Thursday 30 April 2026 17:28:24 GMT