What's the difference between cash flow and profit?
Short answer
Profit is what you earned. Cash flow is what's actually in the bank. Profitable shops die of cash flow problems all the time.
Why they're different
You can do a $50K job in March, book the profit, and not get paid until June. The P&L looks great, the bank account is empty. That gap is what kills small businesses.
Manage cash, not profit
Deposits up front. Fast invoicing. Net 15 not net 30. Cash reserves. Profit is the scoreboard, cash is the air supply. Both matter but cash matters first.
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