One of the most important areas for anyone in business to understand is that profit and cash are not the same. Although both have relative importance, cash, or the availability of it, is by and large the difference between business success and business failure.
This chapter will consider not only the difference between profit and cash but also how the two are linked and how they can be manipulated and managed.
It will also explore some well-proven cash management processes and cash creation techniques that can have both personal and business value.
In business, cash is an asset and in the financial statements it is recorded in the balance sheet as a current asset.
Not all cash on ...