Cash Flow Management Law and Legal Definition

Cash flow management refers to the monitoring, analyzing, and adjusting of a business' cash flows. For small businesses, the most important aspect of cash flow management is to avoid extended cash shortages, caused due to the great a gap between cash inflows and outflows. One should perform a cash flow analysis on a regular basis. Almost all software accounting programs have built-in reporting features to make cash flow analysis easy. One needs to develop and use strategies to maintain an adequate cash flow for his/her business.