Cash Flow Statement

A financial statement that shows the inflows and outflows of cash during a specific period, providing insights into a company's liquidity.

A cash flow statement is a financial statement that provides a detailed overview of the cash inflows and outflows of a business during a specific period. It tracks the sources and uses of cash, including operating activities (such as sales and expenses), investing activities (such as buying or selling assets), and financing activities (such as obtaining loans or repaying debt). The cash flow statement helps small business owners assess the company's ability to generate and manage cash, providing valuable insights into its liquidity, solvency, and financial health. By analyzing the cash flow statement, business owners can make informed decisions, plan for future investments, and ensure a stable cash position for their business.