It is simple to believe that profits should have the highest priority within any business. Profits are fantastic and exhibit that the business is doing well with selling its products; however, if the business cannot afford to pay its bills with extra profits leftover then there may be a difficulty. There has to be a system of checks and balances in order to effectively manage cash flows coming into and outside of the business. Try thinking in terms of a check textbook with credit cash flows on one side and debit cash flows on the other. This will aid separate what should be taken outside from what is coming into the business. More information: more info…