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Creating a budget helps businesses plan their finances by forecasting income and expenses. This can help in making informed decisions and ensuring that resources are allocated efficiently.
Managing the inflow and outflow of cash is vital to ensure that a business can meet its obligations. Positive cash flow ensures that a business can pay its bills, invest in growth, and handle unexpected expenses.
Regular financial reports, such as balance sheets, income statements, and cash flow statements, provide insights into a company’s financial health. These reports help in tracking performance and making strategic decisions.
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