Cash Flow Management – money in and money out and what’s left?

Cash Flow -v- Profit – Is there a Difference?

When reviewing your business – it is important to understand the difference between your Cash Flow and Profit and Loss! The Profit you make in your business is not necessarily represented by the money that you have in your bank account! This is generally the case when there are expenses being paid for by the business that are paid out of the bank account but represented in the Balance Sheet like; TaxObligations’, Owners Drawings, Loan Repayments for Cars or other Assets that are being paid off. The number one pitfall for owners of small business is thinking that because there is cash in the bank – it can be withdrawn and spent. This can start a cycle of lack of funds for paying business operating costs and snow balls into a Cash Flow Squeeze.

The BookSitters can help you to understand the ongoing costs of running your business, what is your cash flow situation and are you really making a profit. We are more than book keepers – we are your business partners, painting the picture behind your numbers!