Lesson 1: Measuring Success

Financial Well-being


Financial statements and balance sheets are excellent tools for monitoring financial well-being.


However, they may indicate cash expected in the future and not actual cash in the bank. For example, orders may be produced or developed, but the customer has not yet paid for the product or service. Cash flow is very important to the financial well-being of a business. To have customers and orders is vital, but if there is not enough cash to pay for expenses, a business is in trouble.