Cash flow
The difference between money coming in and money going out over a period.
Definition
The difference between money coming in and money going out over a period.
Why this concept matters
It shows whether a budget or asset generates or consumes cash.
How it works
All money in and out during the same period is grouped together. The difference shows available surplus or the funding need.
Calculation guide : Net cash flow = cash in − cash out
What to watch
Positive cash flow does not automatically include tax, future works or exceptional risks.
Simple example
£2,500 coming in and £2,200 going out produces £300 positive monthly cash flow.
Example currency : United Kingdom (GBP). The reference country controls the example currency.
Related concepts
Explore the guides →