Sadly, full-time staff are extremely expensive, and many are now hiring freelancers or contracting outside agencies. Cash flow is an important topic because it affects all businesses, no matter what industry they're in, their size or even their expertise. As such, it should be important to nearly all of our readers. But before we can tackle cash flow and explore the ways in which cash flow problems are solved, we need to fully define what cash flow is and why it can be a problem. Simply, cash flow is defined as the pattern of a person or company's income versus its expenditures.
Cash flow is primarily concerned with profit and loss.
Good cash flow is when you're in profit. Bad cash flow is when you're running at a loss. More technically, cash flow takes into account all of your financial dealings. It incorporates everything from net profits and the sale of assets, through to amortization of debts and depreciation. If you own a larger company, you may refer to this as 'free cash flow' which is where capital expenditure and shareholder dividends are also subtracted.