Small-Business Cash Flow: Profit Is Not the Same as Cash

A business can make a profit on paper and still struggle to pay bills because cash arrives later than expenses. Track opening cash, expected money in, expected money out and closing cash by week. This exposes timing problems before they become emergencies.nnSeparate money owed to you from money already received. Do the same for bills: a future payment is different from cash that has left the account. Build scenarios for late customers, slow sales or unexpected costs.nnCash-flow planning is not prediction with perfect accuracy. It is an early-warning system that helps you decide what to collect, delay, cut, finance or renegotiate.