Business owners do not need to become accountants, but they should understand the numbers that influence daily decisions.
Profit is not the same as cash
A business can report a profit while still struggling to pay suppliers if cash is tied up in receivables or inventory.
Track receivables and payables
Know what customers owe you and what you owe suppliers. Regular ageing reports make problems visible earlier.
Reconcile regularly
Bank reconciliation is a basic control that helps identify missing transactions, duplicate entries and timing differences.
Prepared for Furynight by Md Millad Hossan.