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Cash Flow vs. Profit: What’s the Difference?

July 16, 2019
By Samantha Novick –

Cash flow chartAccording to a Quickbooks report from earlier this year, “61% of small businesses regularly struggle with cash flow.”

Even if your business is profitable, you can be at risk of falling into financial demise. How? Because if you don’t have enough liquid cash on hand to meet the myriad of current and near-term expenses that come with owning a small business, it can be nearly impossible to keep your operation afloat.

What is cash flow?

Cash flow is essentially the cycle of funds going in and out of your business from operations, investing, and financing activities. It’s the amount of liquid cash that you have at your disposal at a given time. Your business can either be cash flow positive, or cash flow negative. (more…)