To develop budgets specific information about cash flow-inflows and outflows is also needed. Cash flow is the movement of money in and out of a business-the process through which the business uses cash to generate products services for sale to customers, collects cash from sales, then completes this cycle all over again. Organisation's need cash flow in order to operate. The cash position changes constantly, depending on stock material supplies purchases, le or wages payments or incoming payments.
What is the importance of a cash flow budget or report?