What a Cash Flow Statement Is and Why It Matters for Expense Management

SAP Concur explains what a cash flow statement is and why it matters: cash flow is the net balance of cash entering and leaving a business at a specific point in time, flowing out when inventory is bought and in when customers buy products. Rent, utilities, payroll, and bank and credit card fees make cash flow complex, and credit terms and financing can push payments later. A cash flow statement typically has three sections—operations, investing, and financing—and can be prepared using the direct or indirect method. The article also lists strategies to improve cash flow, including customer credit checks, leasing instead of buying, early-payment discounts, better inventory management, prompt…