Cash Flow and Profit Essay Example | Topics and Well Written Essays - 250 words

Cash Flow and Profit - Essay Example In most cases, cash flow is much important for small scale business than profits. Because of cash flow, a business may run properly. It is that money that is essential in running and managing a business without it,  a firm may be sent out of business. Additionally, cash flow is that money that a firm needs to continue paying its bills at the end of each month (Rosemary, 2015). Also, it is necessary to have cash flow as opposed to profits. Without cash flow, you may make profits but that would not be good for a company with long term goals. Profits may be good for a company, but cash flow is something that is a must for every business as it puts the company in a position to stand on its own even in times that are hard. A good example of a company that had much cash flow was Amazon (Stever Robbins Inc 2015). Despite making losses for some time, the cash flow available made it possible for the company to run for long enough to start realizing profits. Despite the differences between cash flow and profits, these two items are important to any business. Cash flow ensures that a business can stand on its own and profits put a business in a better position to expand its