Accounting
What is Cash Flow?
Cash flow is the net amount of cash and cash equivalents moving into and out of a business during a specific period, categorized into operating, investing, and financing activities.
Explanation
Cash flow management depends on the timeliness and accuracy of accounts payable and accounts receivable processing. Delayed invoice processing means payments go out later than planned, distorting cash flow projections. Slow cash application in AR means incoming payments aren't reflected in cash positions promptly. Automation improves cash flow visibility by processing documents faster — invoices are matched and approved quickly (enabling early payment discounts), and incoming payments are applied to AR immediately. Accurate, real-time AP and AR balances enable treasury teams to manage cash positions with greater precision.
How Rima relates
Faster AP processing enabled by Rima improves cash flow visibility and enables teams to capture early payment discounts that manual processing cycles miss.
Learn about AP automationRelated Terms
Accounts Payable (AP)
Money a business owes to suppliers for goods or services received but not yet paid.
Accounts Receivable (AR)
Money owed to a business by its customers for goods or services delivered but not yet paid.
Bank Reconciliation
The process of matching a company's internal records to its bank statement to identify discrepancies.
Financial Reporting
The process of producing financial statements that communicate a company's financial performance.
See it in action
Rima automates the manual document workflows accounting teams spend hours on every week.