10/23/2026
Accounting Vocabulary Made Simple: Part 2
One of the most dangerous traps for small business owners is confusing Cash Flow with Net Income.
🔹 Cash Flow: The actual cash moving into and out of your bank accounts right now.
🔹 Net Income: An accounting calculation of profit on paper over a specific period (which includes unpaid invoices or upcoming bills).
You can be profitable on paper and still run out of cash to pay payroll if cash flow isn't managed properly!
Clean monthly reconciliations give you clarity on both.
Need help keeping your books accurate and reliable? Message me directly to connect!