A company or a business entity needs cash to meet its everyday operating expenses, asset purchase, marketing expenses etc. Sometimes, an unplanned cash flow management strategies lead to business failure. Cash-flow can be of two types both positive cash-flow and negative cash-flow. Positive cash-flow shows that the company has the cash to meet its obligations, which attracts investors but negative cash-flow shows the company has less cash to meet its daily obligations.
It's just amazingly important to take care of your income and expenses no matter if we are talking about a company or an individual because if you don't pay close attention to it, you should be really lucky not to go bankrupt. And I know what I am talking about because I went through that. My first business started rapidly and I thought that it will go on forever but I didn't even realise how revenue halved at some point because I wasn't smart enough to track cash-flow properly so I ended up googling #1 on yelp for bankruptcy lawyer san diego which was a huge experience for me and it changed me completely. Now I am trying to spot even the smallest problems to solve them as fast as possible and this kind of approach pays off.