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Cash Flow Management Definition and Explanation PDF | Download eBooks

Learn Cash Flow Management definition in project management with explanation to study “What is Cash Flow Management”. Study cash flow management explanation with project management terms to review project management course for online MBA programs.

Cash Flow Management Definition:

  • Cash flow management involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the project.

    Successful Project Management by Jack Gido and James P. Clements

Cash Flow Management Explanation:

Cash flow is defined as the flow of money to or from a business. Managing cash flows are a very important part of project management. It involves checking if the customer has made enough payments so that the cost of the project can be met. Cash flows can be positive or negative. Examples of cash flows in a project are material expenses, labor cost, travelling expenses etc. An assumption regarding cash flows in made in project management which states that cash flows in faster than it is spent. The incoming cash from the customer is managed using the terms of payment with the customer. Same is the case with out-flows with an exception that the payment terms with the supplier is negotiated.

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