Being able to predict how much cash you have on hand (or don't) is critical to running a successful business.  It helps make all business decisions more informed.  Can you afford to take advantage of that great deal, can you afford to pay more payroll and take vacation? Pay off more debt or do you need to tighten up the belt or look into a short term line of credit. This spreadsheet that you will receive and be taught to use is really important to help you be informed about your business.  Before becoming a business owner, I was a bookeeper for 30 years and this was my most important tool.