Solving The Mystery Of Profit vs. Cash
As the CEO of a 6- or 7-figure consulting firm, have you ever reviewed your Profit & Loss Report and realized that the company generated a Net Profit for a particular period? Your initial reaction is one of happiness and pride, right? However, you log into your bank account and your reaction is one of shock and frustration because you do not have enough money to cover your expenses for the month?
In this video, I am going to solve the mystery on why you can generate a profit and still not have enough cash flow to cover your expenses and invest in the growth your business and how to fix that immediately.
Net Profit is a result of earning more money than you spent for a particular period of time. However, in those unfortunate months where you spent more money than you earned, the result will be a Net Loss.
Cash is the money you have left over after subtracting your beginning cash balance from your Net Profit or Net Loss. The key to growing a business is that the company must generate a profit while maintaining a positive cash flow balance.
About Octavia Conner
Octavia Conner is the CEO of Say Yes To Profits, a full-service virtual accounting firm. As a Virtual CFO, she helps consultants build million-dollar firms sooner than they think.
As an award-winning financial strategist and published author, she was selected as one of the Top 50 Cloud Accountants in North America. Octavia strategically combines over 13 years of accounting, business, and finance experience that has enabled her clients to grow between 30% and 350% within 12 months and save over 60% in taxes.
For more information, visit SayYesToProfits.com.
To speak with Octavia regarding accounting and virtual CEO services click here.
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