Every business needs to manage its finances carefully. Revenue is the total money a company receives from sales or services. But revenue alone does not tell you if a business is doing well — you also need to know its costs.

Profit is what is left after you subtract all the costs from the revenue. A company with high revenue but higher costs makes a loss, not a profit. Managing cash flow — the money moving in and out — is essential for day-to-day survival.

Many businesses take on debt to invest in growth. Investment can help a company expand, hire more people, or develop new products. But too much debt creates financial risk.

When working with clients, it is important to send a clear quote before starting work. Once the client agrees, you sign a contract. If the price is not right, you can negotiate — discuss and find an agreement that works for both sides.