Please forgive me. But I am needing help. I am running a business for 15 years. And another for going on 3. You would think that I would be good at this by now. How do I have a profit if I’m barely surviving. I don’t have any money left over to pay taxes let alone call it a profit. It’s like I’m struggling. And can’t figure this crap out. -Mr. Overwhelmed
Not sure what’s up with the answers you have received so far.
The correct answer is most likely the difference between cash flow and profit.
If you run a business that has inventory, it is possible to have a profit, but negative cash flow.
This occurs when you inventory levels at the end of the period are higher than at the beginning of the period - in which case the profit has been spent on higher inventory levels.