Cash flow is money moving into and out of a business during a defined period. Net cash flow equals receipts minus payments in the same currency. It differs from profit because credit timing, inventory purchases and investment can affect cash and earnings differently.[1]
A profitable month may consume cash when substantial stock is bought. Separate operating, investing and financing flows and reconcile opening and closing cash. Loan proceeds improve cash without being sales revenue, and a large payout is not automatically profit.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.