Fin 504 week2 dq 2 grand canyon uni with participation
Cash and profit planning are both important because they both provide different types of insights into an organization’s financial health. For example, if a company has plenty of profits but little cash then it may be difficult for them to take advantage of growth opportunities or cover unexpected expenses which could put their long-term success at risk. Similarly, if a company has a healthy cash balance but low profits then this could indicate problems with pricing strategies or cost management which may need to be addressed in order to remain competitive in their market.
Overall, maintaining a proper balance between these two elements is critical for achieving long-term success; therefore, it is important for organizations to incorporate both aspects into their overall financial strategy so they can create an environment where sustained profitability is possible without compromising liquidity levels.