what is cashflow? Cashflow means the money coming into and going out of a business. It’s important because it demonstrates the ability of the business to cover its expenses, compensate employees and enhance its growth. With positive cashflow, revenue surpasses expenses, but a negative cashflow may indicate problems to come. So that expenses are handled effectively and the business can stay alive, watching cashflow is a must. Running out of cash could cause a business, even a good one, to fail, so managing cash is critical for its future.