Profit vs. Cashflow

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.

Video - Profit vs. Cashflow

Sursa: MBV Tax Expert