Net Cash Flow - GCSE Business Definition

Net Cash Flow is the difference between the money coming into a business and the money going out over a time period. If there is more cash coming in than going out, there is a positive net cash flow. More cash going out than coming in is a negative net cash flow. It is an essential measure for understanding a business's liquidity and short-term financial health, helping them plan for future expenses, investments, or growth. By keeping track of net cash flow, businesses can ensure they have enough cash on hand to meet their day-to-day obligations to avoid financial difficulties.