PROFIT is one of the most basic goals of businesses. In order to achieve sustainability, the continuity of PROFIT is essential.
However, businesses do not conduct their activities with PROFIT, but with CASH and CASH-like assets. The profit obtained must be evaluated in the most accurate way to ensure that business activities are carried out smoothly and to achieve the set goals.
Most businesses think that success is achieved and that they have reached their goal when they make PROFIT. Making PROFIT alone cannot be considered success. Businesses need to analyze the Income and Payments balance that they will encounter in the future well. Otherwise, if you do not have a Budget Management, the profits you have made in the past commercial period will face the risk of melting with wrong decisions.
Monitoring cash flow will allow you to keep payments and expenses under control in periods when income and collections decrease, and will guide you for the future use of cash and similar assets in periods when things are going well financially.
When you monitor your cash flow with a budget approach, it will provide you with a vision for the future, at least for your own business, in case of unexpected economic situations, and it will be a serious support element for the decisions you will make.