Different views of your business
Profit reporting and cash movement answer different questions. The timing of collections, supplier payments, investment and borrowing can affect the bank balance.
Plan the timing
Prepare a simple forecast of expected receipts and payments. Update the assumptions regularly as circumstances change.
Use it to ask better questions
Discuss which commitments are fixed, which receipts are uncertain and what decisions need to be made. Seek advice appropriate to your specific circumstances before financing or tax decisions.