Cash is what keeps a business alive, but how do entrepreneurs monitor it? In this video, we'll be discussing the cash flow statement, which is a crucial tool for understanding the cash inflows and outflows of a business during a specific time period. This statement is important because it provides a more accurate picture of a company's liquidity and financial health compared to other financial statements.

We'll be using the example of Nat Kennedy, founder of Nattie's, a luxury e-commerce clothing retailer that specializes in handmade silk garments made by highly skilled tailors based in the Far East. You'll see how the cash flow statement works and how it can be used to help Nat keep track of Nattie's financial situation.

By the end of the video, you'll have a clear understanding of what a cash flow statement is and how to use it to assess a business's financial performance. So get ready to learn about one of the most crucial financial statements and see how it can help you make informed decisions for your own business in the future.