Profitability ≠ Cash Flow | Ep 5

💰 Why Your Profits Aren’t in Your Bank Account (Cash Flow vs. Profit Explained)

📢 Are you making a profit but still struggling with cash flow? Many businesses are profitable on paper but find themselves taking loans to cover payroll and expenses. In this episode, we break down:

✔️ Why profit ≠ cash flow

✔️ Where your money is actually going

✔️ How to fix cash flow gaps and improve financial health

🔔 Subscribe for more financial insights!

⏱️ Chapters

00:00 - Introduction: Profit vs. Cash Flow

00:09 - The Illusion of Profitability

00:26 - Why Businesses Struggle with Cash Flow

01:12 - Where Your Cash is Really Going

01:41 - Accounts Receivable & Late Payments

02:24 - Inventory Management & Cash Tied Up

03:01 - Debt Repayments & Owner Draws

04:00 - How Taxes & Payroll Timing Impact Cash Flow

04:56 - Fixing Cash Flow Gaps

05:52 - Shortening Payment Cycles & Enforcing Collections

06:45 - Inventory Planning & Financial Forecasting

07:26 - Final Thoughts: Creating Sustainable Cash Flow

✅ Key Takeaways:

✔️ Profit on paper doesn’t mean cash in the bank—cash flow management is key!

✔️ Identify where your cash is going: AR, inventory, debt, taxes, payroll.

✔️ Improve payment cycles & collection strategies to free up cash.

✔️ Plan ahead for loan repayments & tax obligations to avoid cash shortages.

✔️ Monitor cash flow separately from profit for better financial decisions.

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Full Send | Accounting & Data

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