It takes both Cash Flow Statements and Income Statements to know your financial health.
Cash Flow Statements show how much money flowed in and out of a business in a given period of time. Bills are paid in cash.
Income Statements show how much money a business made, including accounts receivable, during a given period. Taxes payments, and elgibility for loans, are based on Income Statements.
Plan conservatively because
things happen. For example, fuel prices will change and customers who
owe money will not pay on-time or at all.