Author archives: Cassady Schiller CPAs & Advisors

17
Jan

How do Profits and Cash Flow Differ?


Business owners sometimes mistakenly equate profits with cash flow. Here’s how this can lead to surprises when managing day-to-day operations — and why many profitable companies experience cash shortages.

Working capital

Profits are closely related to taxable income. Reported at the bottom of your company’s income statement, they’re…