What is cash flow and why is it important for a business?

Cash flow refers to the amount of money that flows in and out of a business over a period of time. It is important for a business because it determines the ability of the business to pay its bills, meet its financial obligations, and invest in future growth. A positive cash flow means that a business is generating more money than it is spending, while a negative cash flow means that a business is spending more money than it is generating. A negative cash flow can be a sign of financial distress and can lead to the failure of a business if it is not addressed in a timely manner.