What does cash flow mean. is that money that gees to your pocket. or do you have to use that money to pay your

to pay your employees and other expenses. Or is that just pure profit?

Go to http://www.score.org/template_gallery.ht... and download the Excel template for estimating cash flow

Cash flow is the total amount of cash generated.

Lets say you have a shoe box to collect money people pay you for what you sell. You started the day with $50.00 to make change. At the end of the first day you have $100.00 because you sold $50.00 worth of goods. That's a positive cash flow of $50.00. A Good thing! On the second day, again you sold $50.00 worth of goods, except you paid your electric bill for $60.00. Oops, that a negative cash flow of $60.00. Keep this up and you will be out of business soon. However, for the two days you had a positive cash flow of $40.00. Things are good. Cash flow is measured over a period of time; day, week or month. The more the cash flow changes from positive to negative the more likely you want a shorter period to measure cash to discover why it changes so much or frequently.