Arguably, profit and cash flow differ because profit is considered an amount that a business entity is left with after settling all the firm’s expenses. Contrary, cash flow is an aggregate net flow in the form of cash both into the business and out of the business operations. Therefore, cash flow is considered as attainable operational balance and conclusive monetary coverage (Sitompul & Khadijah, 2020). While cash flow existence can occur without necessarily a firm gaining a profit, the existence of profit is only estimated after a positive balance of trade. It is believable that the firm’s cash flow and profit are essential aspects. For instance, understanding both will allow the company manager to gauge the firm’s operational capabilities while ensuring that the business can stand on its feet in terms of paying for its expenses. Additionally, while profit indicates positive returns to the company, cash flow indicates positive operations that contribute to desirable business decisions.
As a technology manager, I would be keeping an eye on innovation and incorporating the same into operation while focusing on the cost factor. According to Elia et al. (2021), the cost factor is the main aspect to focus on when a firm needs to be innovative. For instance, cost consideration is critical as it will minimize resulting friction from the extended cost that might jeopardize entire operations. Cost consideration will be my major aspect to focus on in my venture.
References
Elia, A., Kamidelivand, M., Rogan, F., & GallachĂłir, B. Ă“. (2021). Impacts of innovation on renewable energy technology cost reductions. Renewable and Sustainable Energy Reviews, 138, 110488.
Sitompul, S., & Khadijah, S. (2020). Analysis of net profit, dividend, debt, cash flow, and capital networking that influence investment decisions on manufacturing companies. International Journal of Research and Review, 7(3). 56-63