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Cash Flow

Cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project.

In project management cash flow is usually controlled by periodical cash flow reports. Typical report contains both actual and planned incomes and expences during specified time.

Note that cash flow report only includes icomes/expences thad were done in cash. This is very important for describing the health of the business. Let’s say you already made $1000 in sales, but you still may have to wait to collect that cash (due to the terms you have with the customer). Even though you may be showing high profits on the Income statement, you may have no cash to show for it.