What term refers to monitoring the movement of cash in and out of a business?

The term that refers to monitoring the movement of cash in and out of a business is cash flow. Cash flow encompasses the total cash receipts and cash payments of a business, allowing it to assess its financial health. By analyzing cash flow, businesses can understand how money is moving within the company, which helps them make informed decisions about operations, investments, and staying solvent.

In contrast, capital management involves decisions related to the company’s funding and investment strategies, while financial planning refers to creating a comprehensive plan for managing one’s finances to meet future goals. Budget tracking is focused more on comparing actual financial performance against a pre-established budget, rather than the overarching movement of cash. Thus, cash flow specifically targets the inflows and outflows of cash, making it the most accurate term in this context.