Cashflow is the amount of money being transferred into and out of a business. It’s the difference in money you receive and money you spend in a given period. Cash flow is separate from your income statement. For example, you can receive more money than you spend. You then have a positive cash flow, while according to the profit and loss account you can make a loss. This may have to do with depreciation, or because there are still many invoices unpaid by your customers.