Understanding your cash flow is crucial for any individual or business, as it provides insight into the health and sustainability of your financial situation. Cash flow refers to the amount of cash coming in and going out of your bank account over a given period of time. Without a clear understanding of your cash flow, it can be difficult to make informed decisions about budgeting, investments, or strategic planning. For businesses, managing cash flow is particularly critical, as it can impact the ability to pay suppliers, creditors, and employees. By monitoring and analysing your cash flow, you can identify potential problems, take steps to address them, and make sound financial decisions that support your short and long-term goals.
