![what is cashflow what is cashflow](https://i.ytimg.com/vi/DuvIF0vX03w/maxresdefault.jpg)
![what is cashflow what is cashflow](https://whateveriknow.com/wp-content/uploads/2017/05/cashflow-quadrant.jpg)
Cash flow can be positive (more cash is flowing in than out) or negative (more cash is flowing out than in). While it may be confused or conflated with profits by some, cash flow is actually a process, not just a figure on the balance sheet. Understanding Cash Flow-and Cash Flow Risk But by implementing the right best practices, you can optimize your cash flow risk management and rest easy knowing you have the funds you need, when you need them most. Taking control of your cash flow risk can seem daunting.
![what is cashflow what is cashflow](https://baremetrics-wordpress.imgix.net/20210821070617/Picture1-13.png)
Cash flow risk is the term used to describe the potential danger of falling short created by your cash flow management practices-the lower your cash flow risk, the better equipped your company will be to use its working capital effectively. A river of money flows in and out of your business every day, and if you’re not managing it effectively, you might find your coffers running dry when it’s time to pay bills, cover surprise expenses, or direct capital into innovation and growth.