Cashflow Rules Everything Around Me | C.R.E.A.M

A lack of profit is like a cancer. If it carries on for a long time, it will eventually kill you. But a lack of cash is like a heart attack. If you can’t pay the rent, you shut down just like you would if your heart packed up. You’re finished. If you can’t pay the wages, it’s all over. Don’t be without cash. You can live without profit but not without cash. It’s very basic and simple advice. — Theo Paphitis
Profit and Loss (P&L) is useless. From my humble experience, it is largely the creation of accountants for accountants. Rarely do P&L statements give an accurate idea or actual real sense of what a business looks like. There are various simple (legal) ways of manipulating P&L’s for various reasons. Amortization, asset valuations, manner of booking revenue, payment terms, profit types include:
* Gross profit
* Earnings before interest taxes, depreciation and amortization, (EBITDA)
* Earnings before interest and taxes (EBIT)
* And a whole bunch other stuff.
If you want a...