Over my years consulting with businesses, I am amazed at the number of owners who ignore the cash flow statement.  Most seem to think that if the income statement shows they have been profitable, they are in good shape.  A few years ago, a news article reported the closing of the doors of a business due to insolvency.  The owner stated that he didn’t see it coming as the income statement showed him to be making money.  Had he been reviewing a cash flow statement along with his other statements, he would have seen trouble on the horizon and could have taken steps to avoid the death of his business.  My advice is to (1) have a knowledgable person prepare a simple Direct format Cash Flow Statement and (2) include the Cash Flow Statement as part of your monthly financial review.