Profit & Cash

Understanding the Cash Flow of a business is as essential as understanding Profit

Income|Outcome Learning

Profit is like food: you need it for the business to grow and to be healthy and strong; but you don’t have to eat all the time. But Cash is like air – you need it constantly.  If you run out, and cannot immediately get more, you die. 

Profit happens on the Income Statement. Cash Flow happens on the Balance Sheet.

 

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Profit & Cash

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