IT Financials Glossary

Cashflow

Posted in Financial statements by mgentle on August 26, 2010

Cashflow: the difference between income and expenses. Even if revenue and profits are up, what ultimately counts in the short term is a positive cashflow – ie, money in the bank – to pay employee salaries and vendor invoices. Hence the adage “Turnover is vanity, profit is sanity, cashflow is king”.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: