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If there's a single rule for small business it's "Cash is King". Cashflow is what kills you and the monthly income statement is way more important than your bal
by skeeter2020 4y ago
If there's a single rule for small business it's "Cash is King". Cashflow is what kills you and the monthly income statement is way more important than your balance sheet.
- mediaman 4y agoThis is actually why the balance sheet is more important than the income statement. The income statement can obfuscate what's happening to cash flow. A close study of the balance sheet reveals whether working capital is consuming retained earnings.
- fsckboy 4y agoof course, you could always look at the third leg of the three legged stool, the cash flow statement.