Cash is king. Unfortunately, the accounting concept of “profits” may not be the best metric for gauging whether a business is on top of its game. There are many reasons profits and cash flow might differ, including changes in working capital, fixed assets, financing and owners’ capital. Business owners need to look beyond profits to ensure they have enough cash on hand to pay employees, suppliers, lenders and even the IRS. If you’re profitable but having trouble making ends meet, we can brainstorm ideas to help you more effectively manage the cash flow cycle.
