What Is The Difference Between Profit And Cashflow In A Business ?

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Former PWC Chartered Accountant and Top Finance Director Shaun Walsh explains the difference between profit and cash flow for business owners using a simple example.

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This is about as clear as any explanation that I have seen so far. I still have one question, i.e., is the only difference between profit and cash flow the associated time frames, or are there items that are counted under profit and not cash flow?

sfratini
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Thank you for the short and sweet presentation. This made way clearer than the accountancy I studied in 2 years of school and 3 years of college.

BharathRamMS
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I’ve been telling business owners you can go broke making a lot of money. Great info—thanks for sharing!

businessstrategiesinsights
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Wouldn't the first month be -300 not 500? Because you take off the $200 profit from the 500?

BigMami