Profit vs. Cashflow: What Is The Real Difference?

Many entrepreneurs believe that if a company is profitable, it automatically has money in the bank. This is a misconception. In reality, this is where one of the most dangerous misunderstandings in business occurs. You can achieve strong sales and record a healthy profit yet still face severe financial difficulty. This happens because profit and cash flow are not the same thing. This video provides a comparative analysis of profit versus cash flow and explains why a company can be profitable on paper while lacking actual cash.

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Video - Profit vs. Cashflow: What Is The Real Difference?

Sursa: MBV Tax Expert