A business can show profit on its income statement and still run out of cash due to timing gaps, inventory buildup, payroll expansion, tax accrual errors, or lack of forecasting. Profit and cash flow are not the same.
Revenue is recorded when earned.
Cash flow reflects when money actually moves.
If customers pay on 30–60 day terms, your income statement may show profit while your bank account runs dry.
Warning signs:
Without structured collection systems, cash stalls.
For product-based businesses:
Inventory absorbs cash before revenue is realized.
Inventory consulting and forecasting often unlock trapped liquidity.
Hiring ahead of revenue is common during growth.
But without modeling:
Cash flow deteriorates quickly.
Many U.S. businesses fail to:
Tax bills become cash crises.
High-interest short-term debt creates:
Restructuring or refinancing may reduce payment burden.
A 13-week rolling forecast is standard for financially controlled businesses.
Without one, surprises become frequent.
If you don’t know:
You may be pricing below sustainability.
The goal: convert accounting profit into real cash stability.
U.S.-based businesses that:
Not intended for:
Because profit measures accounting performance. Cash flow measures liquidity. Timing differences create the gap.
A weekly projection of expected inflows and outflows over 13 weeks to anticipate shortages before they occur.
Typically $2M+ revenue or when financial complexity increases beyond bookkeeping.
If your business is profitable on paper but cash remains tight, schedule a call to determine the root cause.