Balancing Cashflow and Profitability for Business Success

Distinguishing between cashflow and profit is crucial for managing a successful business. Both serve distinct financial purposes and understanding their differences is essential. Profit, also known as net income, is the outcome of subtracting expenses from revenue, while cashflow reflects the movement of cash in and out of a business. Positive cashflow indicates more money coming in, whereas negative cashflow indicates more money going out.

How to Increase Cash-flow in Your Business

Free cashflow is the lifeblood of business, not only is it a sign of profitability but also provides a resource to help you grow your business into the future. Free cashflow is what’s left after all your expenses – think rent, wages, finance repayments, taxes. Having enough free cashflow in your business eliminates one of the most common business owner headaches – and taking control is not so difficult – it just requires a little planning, enlightenment and system changes.

What Should You Ask When You’re Looking For A New Accountant

I came across an article last week by Kochie’s Business Builders on what you should ask your accountant once you’ve chosen the right one for you. It was great to read as these are the same things (among a few others) that we discuss and address with our clients. What’s our response?