Cash Flow Really Is King
Jeff Cornwall has an excellent post that gives six reasons entrepreneurs should pay close attention to cash flow. I think the cash flow statement is one that people often misunderstand. It's important though, because accounting rules allow you to show a profit on the income statement without *really* making any money. I can tell you from experience that when you go to borrow money, they don't care about your income statement because cash flow determines your ability to pay back the loan.