A cash flow statement tells you how much cash is entering and leaving your business in a certain time period. Learn how cash flow statements work and why they're important.

Cash flow statements describe changes in the amount of cash and cash equivalents a business has on hand. This is not the same as profit or loss, which is detailed on a company's income statement.

Net Profit . Net profit is calculated from the final section of an income statement. It is the result of operating profit minus interest and taxes, with interest and taxes being the last two ...