How to Manage Small Business Cash Flow For Greater Profitability

In small businesses, it’s not uncommon to accrue millions of dollars in revenue each year without actually producing any meaningful cash flow. You may very well know how frustrating it can be to show profit on your income statement, but not have money in the bank. One part of this issue is a fundamental misunderstanding of how cash flow and profit differ—and yes, they’re different! The other is that many business owners simply aren’t monitoring how cash is moving through their company. To make choices that enable growth and profitability in your business, you have to take control of your cash flow. Here are two critical steps to get you started.