“But my accountant said we were profitable this month!” 😩

This is the classic cry of a founder staring at an empty bank account.

Here is a hard truth about business literacy: Profitability and Cash Flow are not the same thing.

A Budget/P&L tracks your revenue and expenses when they are incurred. It’s a rearview mirror look at performance.

A Cash Flow Forecast tracks exactly when the green paper physically enters and leaves your bank accounts over the next 30, 60, and 90 days.

If you have a $15,000 corporate client contract signed today, your P&L looks amazing. But if they operate on Net-60 payment terms, and your team’s payroll is due this Friday, profit won’t save you. Cash flow will.

To build a legacy with confidence, you have to stop managing by the rearview mirror and start using your headlights.

Do you currently run a 13-week cash flow forecast for your company, or are you hoping for the best every time payroll rolls around?

#CashFlow #Forecasting #FinanceForFounders #Accounting #ScaleSmart