The relationship between profit, tax and cash.


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Cash flow Vs. Profit: Is there a difference?


business analysis

  Commonly, the relationship between profit and cash flow are confused. Many small business owners don’t understand the distinction between “profitability” (as presented on a Profit & Loss report) and the true health of the business from a cash flow perspective. The true meaning (put simply) It is essential for business owners to understand what profit means and why it … Read More

Why having too much cash isn’t always a good thing


Too much cash

“Too much cash isn’t always a good thing”. It sounds impossible. Improbable. Incomprehensible. Especially for an accountant to say. Businesses love cash, but is there such a thing as having too much? While it may seem counterintuitive to ‘suffer’ from having cash, the risks can be overlooked, offsetting the benefit of accumulating it in the first place. Why cash isn’t … Read More