In this episode, I  guide you through the crucial distinction between profit and cashflow—two terms often mistakenly used interchangeably. You'll learn why understanding the difference is essential for your business's financial health. We'll cover how profit is generated purely through business operations, representing what’s left after expenses.   In contrast, cash flow accounts for all movements of money in and out of your bank account, including loan payments, distributions, and investments. Realizing that you can be profitable on paper but still struggling with cashflow issues could be a game-changer for your financial strategy. We'll also dive into the importance of a cashflow forecast and how it can be a Swiss army knife for business owners, helping you navigate your weekly, monthly, and yearly financial planning. Stay tuned as I empower you with the knowledge to simplify money and take actionable steps towards a more financially secure business.   What You'll hear in this episode: [0:50 Understanding Profit vs. Cashflow [2:25] Cash Flow in Relationship to Operations and Cash Balance [4:10] The Importance of Cashflow [6:00] The Importance of Asking Your CFO About Your Statement of Cash Flows And Your Profit and Loss Balance Sheet [8:10] Practical Tips for Managing Cashflow   If you like this episode, check out: Differentiating Between Margin and Markup Maximize Profit and Cash Flow (Financial Priority Formula Part 2) How You Know You Need a CFO   Want to learn more so you can earn more?  Visit keepwhatyouearn.com to dive deeper on our episodes  Visit keepwhatyouearncfo.com to work with Shannon and her team  Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ  Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/   The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.