How to be a "good" manager - to work constantly with profit, although there are not always enough brains for this?
The way out is simple. The main thing is that he has a clever accountant! Which losses (extra expenses) of the current period could be jewelerily written off to the balance sheet, due to which the economic result of this period itself, by adjusting, was displayed as a plus (which is paper profit). And so do it from year to year.
Irony! But in fact, this is by no means a rare phenomenon today.
This situation is always fraught with such a state of affairs - There is profit - there is no money, but no one pays special attention to the balance! Balance, purely as a formal thing.
I think you often hear this - "Everyone reports on the achievement of all the achieved economic indicators, but for some reason they always ask for money to maintain their activities. And they give out money, oddly enough (there is a profit, which means they work well), thereby providing the potential for an increase in inflation in the future.
As a result, working on this principle for a long period of time, everything can lead to the fact that whoever is the last (who will be at the head of the company) will be the "scapegoat". All the shoals of the past management will be written off to him. All hidden losses will be on the balance sheet, which will eventually have to be written off once with a real assessment of all the company's assets (objective inventory). When, for example, an investor wants to buy this business, which is willing to pay money only for its real assets, and not air ones.
The essence of the fable is this - only earned equity, in the form of cash and other liquid assets, is the criterion for effective business operation, profit is indirect.
Other factors may also have an impact on the company's current liquidity - account systems and working capital.
The essence of the fable is this - only earned equity, in the form of cash and other liquid assets, is a criterion for effective business operation, profit is indirect.