Why Cash Flow Is Important In this lesson, you will learn the foundations of financial reporting. This lesson focuses on the difference between profit and cash and how to spot it on your financial statements. Financial statements are a reporting of what’s happened in the past. Successful business owners need to be able to understand the past, while preparing and forecasting the future. Cash is considered King, and in this lesson, we will explore the reason why. Upon successful completion of this lesson, you will be able to: Understand why cash is considered king and how to get, keep, and grow it in your business. Understand the critical difference making a profit on paper and having cash in your bank account. Identify how cash flow problems begin and understand that it is not a problem that only small businesses have. Understand main financial statements and the financial information they provide. Create a cash flow statement using a balance sheet and interpret the results of the changes in cash.