Cash Flow Use in Small Company Decision Making Processes

Cash flow is an important instrument of finance management in a small company, especially useful in financial liquidity management. Ex-post, it provides data indicating the sources of cash inflows, outflows and capabilities of generating operating cash flow. Ex-ante, it enables planning future cash inflows and outflows ensuring correct cash management in a company. The article presents the ways and means to use cash flow information in the main decision areas of a small company.