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Cash flow may be defined as that money that comes in or gets out of a company to fund or finance its projects (Business Fillings Incorporated 2012). On the other hand, profit is that amount of money that remains after deducting the expenses from all the company’s income or revenue. In most cases, cash flow is much important for small scale business than profits. Because of cash flow, a business may run properly. It is that money that is essential in running and managing a business without it,&nbsp.a firm may be sent out of business.