Tag: budge

The adage “cash is king” should stay top of mind for all small business owners, who often confuse cash flow with profit. It’s not unusual for small businesses that are profitable to go under, simply because they were spending cash faster than they were making it. The bottom line of your profit and loss statement (P&L) doesn’t always tell the full story. Profit represents your revenues minus your expenses, but not all profit represents cash in hand because you might not have been paid yet. Likewise, if you ordered supplies but haven’t received an invoice for them, that's an expense, even if it’s yet to be reflected on your bank statement......