A business can be profitable on paper and still struggle to pay its bills because profit and cash flow measure different things. Revenue may be recorded before a customer pays, while expenses can be incurred weeks before the money actually leaves the bank. For small business owners, keeping both sides visible is essential. A good system should show what has already been paid, what is still owed, what customers owe you, and how much cash will realistically be available over the next several weeks.
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