Mincing Words: The Definition of Cash Flow
Do you know the definition of cash flow? And do you know how to spell it? There seems to be no unified way to spell "cash flow." Both "cash flow" and "cashflow" show up all over the place. I've found myself writing it both ways. Mostly I'll stick with "cash flow."
The two spellings of cash flow are just the tip of the iceberg of confusion and disagreement over what cash flow is and isn't. There's no big scandal or great issue here, just a lot of opinion and no universal definition.
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I liken it to the word branding. Toss the word branding into a marketing conference and stand back! There will be a thousand people giving a thousand different variations on its definition. The same happens with cash flow.
What is the definition of cash flow?
For the purpose of this exercise, here's how we're defining cash flow: The flow of money into the business and the flow of money out of the business—keep the water level as high as you can and don't let the tub run dry.
I know it's not elegant, but it works.
How do you spell cash flow? Better yet, how do you define it?
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