Definition of cash flow

Means cash flows (or cash flow) the accounting statement reflecting how much money remains after expenses (disbursements), interest and revenues (receipts). Therefore, the accounting statement of cash flows (or the array of funding) provides information on the movements of cash and their equivalents. Operational activities, investments and financing are part of categories of the accounting statement of cash flows. The operational cash flow corresponds to the (perceived) cashed money or disbursed (spent) generated by the basic activities of the company. Cash flows related to investment operations correspond to the cash coming out of the company to be appointing (whether capital, securities, real estate, etc.), while cash flows related to financing activities relate money from loans (received or paid), the issuance or redemption of shares and payment of dividends.
In making a projection of these accounting statements, the enterprise arrives to predict if she will have of enough cash to meet its expenses and if it will succeed to have profits. However, the analysis of the accounting statement of cash flows is an essential activity for small and medium-sized enterprises lacking liquidity to meet their immediate needs. Cash flow allows to make predictions thus avoiding solutions of emergency at the last minute (such as resorting to banks for loan for short, which are very expensive).
The development of the accounting statement of cash flow allows not only to make a finance management while contributing to making decisions but also to control expenditures to improve profitability.