Many business owners equate cash in the bank with profit on the financial statement. Even though both are essential for a sustainable business, there is a critical difference between cash flow and ...

The Critical Differences Between Cash Flow and Profit Even if you’re not an accounting expert, misunderstanding cash flow and profit is bad for business. Here’s a crash course.

The Difference Between Revenue on an Income Statement and Deferred Revenue on a Cash Flow Statement. Money your company earns from selling goods or services goes into your books as revenue.

Key Differences . Cash flow and net income statements are different in most cases because there is a time gap between documented sales and actual payments. If invoiced customers pay in cash during ...