Interested in how Xero can help your accounting? Understanding cash flow is critical to running a successful small business. Mike Berner, a finance writer at business.com, discusses what the term “cash flow” actually means, why it’s important, and how Xero software helps simplify the concept.

Time Stamps
0:00 Introduction
0:36 What is cash flow?
0:56 The three main sources of cash flow
2:47 How Xero simplifies cash flow in its accounting software
3:40 Additional Business.com resources

“Cash flow” is one of the most important concepts to understand in finance. Basically, the term refers to how money is flowing in and out of your business. Cash flow can come from operating activities, investing activities, and financing activities. Xero helps you understand your cash flow position by visualizing cash in and cash out as a colored graph, which is one reason why it’s a great choice for small business accounting software.

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Mike Berner is a finance writer for business.com.

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