@accounting.knowle8: Every business owner should understand this simple truth: Your business can make plenty of sales and still have cash flow problems. The question is not just: 👉 How much money is coming into the business? You should also ask: 👉 How much money is leaving the business? 💚 CASH IN means money coming into the business: ✔ Sales ✔ Customer payments ✔ Loans or capital injections ✔ Investors' funds ✔ Other business income ❤️ CASH OUT means money leaving the business: ❌ Salaries ❌ Suppliers ❌ Rent ❌ Utilities ❌ Transportation ❌ Loan repayments ❌ Other expenses 📌 THE SIMPLE BUSINESS RULE: 🟢 When CASH IN is greater than CASH OUT, your business has room to grow. 🔴 When CASH OUT is greater than CASH IN, your business is in danger. 🔵 When CASH IN equals CASH OUT, your business may only be surviving. That is why business owners must monitor their cash regularly. Profit is important, but CASH FLOW keeps your business alive.