Is it more important for an entrepreneur to track cash or profits?

For an entrepreneur, tracking cash is generally more critical than tracking profits, especially in the early stages of a business. Cash flow management ensures that there are sufficient funds to cover operational expenses, pay employees, and invest in growth. Profits can be misleading if a business is not managing its cash effectively, as a profitable business can still face financial difficulties without adequate cash on hand. Ultimately, a healthy cash flow is essential for sustainability and long-term success.