Cashflow Beats Profit
Cashflow refers to the flow of money through your business. It usually goes out so you can buy stock and pay expenses, like wages and rent, and comes back when you sell that stock and collect the money from the buyer. Profit is an accounting term trying to show income less expenses. It suffers from so many accounting ‘treatments’ that it is not much use for small business managers. This might sound like a “dry” topic, but mismanaging Cashflow is probably the biggest reason why both big and small businesses fail. It is something you should be aware of and learn how to use it to your advantage. Yellow Belt article.