The key reason for business failure is running out of cash; if a business no longer has cash, it doesn’t matter what else is going on, the business can’t and won’t survive. When cash runs out, the company runs the risk of not being able to meet current obligations. Despite this the majority of failed businesses mislead themselves that profitability is the key indicator of success.
Profit vs. Cash will introduce you to the significance, meaning and differences between profit and cash flow and provide you with an insight into how to understand both.
On completion of this online course, you will gain an understanding of:
- the meaning of profit and cash flow
- the key differences between profit and cash flow
- the significance of reviewing both profit and cash flow
- when considering the health of any business
- how businesses can take control of their cash flow
- how to look at a set of accounts to obtain information to
- help assess both profit and cash flow.