Business Management · Unit 3: Finance and accounts
3.7 — Cash flow
Business Management · SL / HL · syllabus-mapped notes
Profit vs cash flow
Profit is revenue minus costs over a period; cash flow is the actual movement of money in and out. A profitable business can still run out of cash.
Cash flow forecasts
A forecast estimates future inflows and outflows so shortfalls can be spotted early.
Dealing with cash flow problems