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Why is it important for people to complete a cash flow forecast and to calculate break even levels for her business if it is to be managed effectively?
Wiki User
∙ 11y ago
In basic - Its important that the business owner sets out the expected cash out and cash into the business and also the cost of running the business to the hourly rate (daily rate in some companys). By knowing what its costing to run the business each hour you can then work out the break even figure ( no profit and no loss) and by adding an acceptable percentage to the product/running cost you have the profit margin
Wiki User
∙ 11y ago
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