What Is Profit?
Profit is the amount of money left after subtracting business expenses from total revenue.
For example:
A company sells products worth $100,000.
Its total expenses are $80,000.
That leaves a profit of $20,000.
On paper, the business looks healthy.
But profit doesn’t tell the whole story.
What Is Cash Flow?
Cash flow refers to the actual movement of money into and out of your business.
It’s the money available to:
- Pay salaries
- Purchase inventory
- Cover rent
- Pay suppliers
- Invest in growth
- Handle unexpected expenses
A business can show a healthy profit while having very little cash available in its bank account.
That’s where many problems begin.
[…] July 29, 2026 […]
This is one for the archives. Learned so much.
This is a keeper for my bookmarks bar. Bookmarked.
This is going to influence my work for months. Bookmarked.