Category: Accounting & Bookkeeping

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.

Running a business without proper bookkeeping is like driving without a dashboard. You may move forward—but you won’t know how fast, how far, or how close you are to running out of fuel.

Why bookkeeping matters

Bookkeeping gives you clarity. It shows whether you’re profitable, where your money goes, and whether you can afford new hires or investments. It’s also the foundation for tax compliance and investor confidence.

Monthly bookkeeping checklist

• Record all income and expenses
• Upload and tag invoices and receipts
• Reconcile bank and credit card statements
• Review profit & loss and cash position
• Set aside money for taxes
• Back up financial data securely

When to get professional help

If you’re spending hours fixing errors, missing deadlines, or unsure about tax treatment, it’s time to involve professionals. Early support prevents costly cleanups later.