Finance
Cash flow statement
A cash flow statement reports actual cash moving into and out of a business over a period, separated into operating, investing and financing activities. It reconciles reported profit to the change in the cash balance.
In plain terms: Where the money actually went, as opposed to what the profit figure says.
Why it matters
The statement that answers the question that matters most to a small company: can we pay people next month. Watch it at least as closely as the P&L.
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