Definition
Cash flow presents cash receipts and payments over a specified period and shows the actual liquidity of a project or organisation.
Human Explanation
It shows when money is received and when it is spent.
Why it Matters
Even a profitable project can face problems when funds are not available at the required time.
Conceptual Boundary
Cash flow is not the same as profit. It describes the actual movement of cash.
Practical Perspective
For projects supported by grants or subsidies, coordinating expenditure, reimbursements and own contribution is particularly important.