A company may appear profitable on paper while struggling to meet its financial obligations or fund its day-to-day operations. This is because profits do not always reflect the cash actually available. This is where the importance of preparing a cash flow statement comes in. It helps management track cash movements throughout the financial period, identify the sources and uses of funds, and gain a clearer view of liquidity and future cash needs.
Ready to Organize Your Business?
Try Manzuma free for 14 days — no credit card, no commitment.
