Management of cash is a crucial part of any business. It becomes extremely important for a business entity to trace the flow of cash. There exist only two possibilities during a business transaction namely, cash inflow which represents the amount of cash flowing into the business and cash outflow which states the amount of cash moving out of the business hold. Multiple transactions take place every single day based on the inflow and outflow aspect. You might have heard a lot about the term ‘cash-flow’ is often used in the business world. Let’s understand what cash flow and its forecasting mean in business terms.