What Is Fund Flow?

Difference fund flow and cash flow?

  • Answer:

    A fund flow is something like a retirement account, a ira or any kind of portfolio where proceeds from the revenue or a set aggregate amount goes into one of these funds, usually set aside for retirement or venture capitalism, while a cash flow is what is needed to keep a business running. Cash comes in and is dispersed into overhead, payroll, insurance, taxes, supplies etc. That is what is generally known as cash flow, the money coming in vs the expenditures going out as bills. If more goes out than comes in it is stated as a negative cash flow, which should raise a red flag that something needs to be done and fast. That is why monies need to be set aside to cover the outgoing bills when times are tight.

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A fund flow is something like a retirement account, a ira or any kind of portfolio where proceeds from the revenue or a set aggregate amount goes into one of these funds, usually set aside for retirement or venture capitalism, while a cash flow is what is needed to keep a business running. Cash comes in and is dispersed into overhead, payroll, insurance, taxes, supplies etc. That is what is generally known as cash flow, the money coming in vs the expenditures going out as bills. If more goes out than comes in it is stated as a negative cash flow, which should raise a red flag that something needs to be done and fast. That is why monies need to be set aside to cover the outgoing bills when times are tight.

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