08/23/2026
Profit does not always mean cash in the bank.
Your Profit & Loss report may show a profit while your bank balance remains low. Why?
✓ Customers have not paid their invoices yet
✓ You purchased equipment or other assets
✓ You made loan principal payments
✓ You withdrew money for personal use
Profit measures business performance, while cash flow shows how money moves in and out of your business. Review both regularly to understand your true financial position.
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