When your Profit and Loss Statement shows that you have positive profit, you need to really check if that is real profit because it may not. Positive doesn't mean the business is financially healthy. This is the case of just “paper profit”. Why does this happen? Unreal profit happens when profit that does not equate to having actual cash in the bank.
In this episode, Annette will give you some guidelines on how to ensure that you have the right cash management in your business. Some of the causes why the business is not financially solvent is when there are money leaks happening in your business operation.