Analysis Based on the Importance of Cash Flow Management in Business Management

Abstract

Cash flow refers to the monetary income and expenditure that objectively exists during the development and operation of the enterprise. Cash flow can reflect the dynamics of the economic activity of the enterprise, and can control and safeguard its monetary income and expenditure effectively. Cash flow is the sum of cash and equivalents during the management of an enterprise. Cash equivalents usually refer to different types of non-cash investments with high liquidity, short maturity, low risk of changes in value, and easy conversion into a definite amount of cash. Cash flow management, as one of the basic elements of business management and capital operation, affects the production and development of enterprises. This paper analyzes the importance of cash flow management based on the characteristics of enterprise management. At the same time, this paper also explores how to promote sustainable business management by controlling enterprise cash flow.