Many profitable businesses fail because they run out of cash. Understanding the difference matters more than you think.
Definitions
- Profit: Income minus expenses (on paper)
- Cash flow: Actual money moving in and out of your bank
A business can show profit but still struggle to pay salaries or rent.
Common cash flow traps
- Late customer payments
- High upfront expenses
- Inventory tied up as unsold stock
- Ignoring tax liabilities until due dates
How Genau helps you monitor both
Genau provides real-time dashboards that track profit and cash together, so owners spot issues before they become emergencies.
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