Cashflow refers to the movement of money in and out of a business or individual’s finances over a specific period. It includes all sources of income, such as sales and investments, as well as all expenses, like rent and salaries. Positive cashflow means more money is coming in than going out, which is essential for maintaining operations and growth. Managing cashflow effectively is crucial for financial health. Businesses often create a cashflow statement to track these movements, helping them plan for future expenses and investments. Understanding cashflow can prevent financial difficulties and ensure that obligations are met on time.