Cash Outflow - GCSE Business Definition

Cash outflow refers to the movement of money out of a business, such as the various expenses and payments that a company needs to make.

For GCSE Business students, it's important to understand that cash outflows include costs such as purchasing raw materials, paying employee wages, settling utility bills, and covering operational expenses. Cash outflows impact a company's liquidity and overall financial health. By monitoring cash outflows, businesses can ensure they have enough cash on hand to meet their obligations and avoid financial difficulties.