09/10/2026
Cash flow and profit aren't the same thing β and understanding the difference matters.
Your business might be making a profit on paper, but that doesn't necessarily mean you have plenty of cash sitting in the bank.
Cash flow looks at the money actually coming into and leaving your business. Profit looks at what's left once your business expenses have been deducted from your income.
Things such as customers paying late, upcoming supplier bills, tax payments or large purchases can therefore leave a profitable business short of available cash.
Keeping an eye on both gives you a much clearer picture of how your business is really doing and helps you plan ahead.
Need help making sense of your numbers? Get in touch with Torias Books.