BizSugar.com › Management › Why Profitable Businesses Fail, and How to Fix It

Is your business realizing great profits but still feeling the pinch each month? There may be a number of reasons for this, but more than likely you’re experiencing cash flow problems.

It’s a mistake many businesses make – focusing on overall profitability but failing to take cash flow into consideration (cash flow problems are, by the way, the #1 reason why small businesses fail) when reviewing their books.

Believe it or not, your cash flow statement is a truer reflection of your business’ financial health than your P&L report.