Cash flow is the total amount of money moving into and out of a business. Cash flow is very important especially for small businesses, lack of cash is one of the biggest reasons small businesses fail.


In accounting, cash flow is the difference in amount of cash available between opening balance and closing balance. If the closing balance is higher than the opening balance, it is called positive cash flow otherwise called negative.


An example cash flow report:
Cash flow
In investment property, cash flow refers to the actual spendable cash the investor will receive after deduction of all operating expenses, loan payments and an allowance for the income tax attributable to the income.


This type of investment is called cash flow investment and real estate is just one type of cash flow investment. Other examples can be any asset that provides regular income which is enough for loan payments and all other operating expenses.
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