Understanding your numbers
Profit is not the same as cash in the bank
3 min read
Cash in the bank is what you have today. Profit is what is left after you subtract every expense from your income. Money you owe for taxes, supplies or loan payments can make a full account look better than it is.
Check your profit and loss report each month, not just your bank balance. It shows what you earned, what you spent and what actually stayed with the business.
If profit looks thin, look at your biggest expense categories first. That is usually where the quickest wins are hiding.
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