A positive cash flow account means that the money come into the business is more than the amount going out.
For businesses with a high overall profit, low cash flow could still reveal problems like patterns of ordering too much stock or overspending.
Nidhi Jain Certified Public Accountant, Certified Tax Coach
Nidhi Jain is a CPA and Indian CA providing services in US and India. We serve Bay area including South Bay, Sunnyvale, San Jose, Milpitas, Fremont, East Bay, Trivalley, Pleasanton, Livermore, Dublin and San Ramon. We specialize and have extensive experience to best serve our clients with complex tax situations like: Asset Inheritance and Gift from Foreign countries, Repatriating Money from Foreign countries, FBAR Filing (Foreign Bank Account Reporting), Incorporation of US Entity by International Clients, International Tax reporting and compliance of selling property abroad, Tax Planning and Advisory Service