You can be profitable on paper—and still panic about payroll.
If you’ve ever opened your Profit & Loss report and thought:
“It says we’re profitable… so why does my bank account feel empty?”
You’re not imagining things. You’re just facing the cash flow gap—and you’re definitely not the only one.
I’ve seen this time and time again. Smart, driven business owners hitting their revenue goals… yet feeling like they’re constantly one step away from financial chaos. Why?
Because profit doesn’t pay the bills.
Cash does.
💸 Profit vs. Cash Flow: Let’s Set the Record Straight
Here’s the simplest breakdown:
Profit = Income – Expenses
It’s what your reports say is “left over.” It’s a number… not a dollar bill.
Cash Flow = Actual movement of money in and out of your account
It’s what you have on hand. And it’s the oxygen your business breathes.
So yes, you can show a beautiful profit on paper—and still not have the funds to cover rent, payroll, or taxes this week.
Let’s look at a few reasons why that happens:
- Clients paying late (you invoiced, but the cash isn’t here yet)
- Big upfront purchases (inventory, equipment, annual subscriptions)
- Debt payments made this month
- Large payroll or a hefty owner’s draw
Bottom line? You can “look good” on your reports… and still feel broke.
📉 Where the Cash Flow Freakouts Start
Here’s what’s usually going on behind the scenes:
🔁 Slow or unpredictable incoming payments
Waiting 30+ days to get paid bottlenecks your cash—even if your revenue is technically strong.
🧾 Big bills hitting all at once
Loan payments, quarterly taxes, payroll, and software fees can pile up. And when they do, your cash cushion takes a hit.
🧠 Lack of visibility
If you’re not tracking what’s coming in and going out, every surprise feels like a five-alarm fire.
📈 How to Stay Calm (and Cash-Ready)
You don’t need a finance degree. You just need a few smart habits:
✅ Open your Cash Flow Statement regularly
It’s not your P&L. It tells you when money is received and spent—so you can plan, not panic.
✅ Be unapologetic about follow-ups
Send reminders. Automate them in QuickBooks. Your work deserves prompt payment—don’t leave money on the table.
✅ Time your payables with intention
If bills are due on the 1st but your receivables land on the 15th… you’re setting yourself up for stress. Shift what you can.
✅ Build your “Calm Cushion”
Even one month’s worth of operating expenses in reserve can turn a crisis into a moment of calm confidence.
💬 Real Talk from Cheryl
This isn’t just about having more money.
It’s about having the right money available at the right time.
Your profit proves you’re doing great work.
Your cash flow proves you’re running a sustainable business.
And both matter.
🎯 Quick Win This Week:
Open your Cash Flow Statement in QuickBooks.
Look back over the last 60 days and ask:
- What patterns do I see?
- Were there any tight spots?
- Could I schedule income or expenses differently next month?
Even small adjustments can lead to major peace of mind over time.
🧠 Mindset Moment
Let this sink in:
Profit is power. But cash is peace.
And peace of mind? That’s what keeps you clear, confident, and in control.
