You made a profit last quarter. On paper, everything looks fine. So why are you sweating payroll and dodging vendor emails?
It’s not a sales problem. It’s a cash flow problem.
These are the warning signs to watch before your bank account pulls another disappearing act.
1. You’re Looking at Profit, Not Cash
Profit is what’s left after you subtract expenses from revenue. Cash flow is what actually lands in your bank account. And those two numbers are not always friends.
You can show a $10,000 profit and still have $8 in the bank. Why?
- You have not collected from clients yet
- You pre-paid for something big
- Your credit card balance doesn’t hit the P&L yet
- You forgot about taxes (again)
2. The Timing of Your Money Is a Mess
A healthy business has money coming in before it needs to go out. But if you’re getting paid 45 days after the job is done, while expenses hit weekly?
That’s a gap. And gaps create panic.
Look at:
- How long it takes clients to pay
- Whether your vendors are on auto-draft
- When your rent, payroll, and taxes actually hit
The tighter the timing, the better your cash stays in check.
3. You’re Spending Based on Hope, Not Facts
You had a good month, so you upgrade software, sign a contract, or buy new gear.
Then you remember quarterly taxes are due… and you’re short.
If you’re not forecasting cash 30 to 90 days out, you’re making decisions in the dark.
Even a simple cash flow forecast (yes, we can build it) gives you breathing room before a big expense takes you down.
4. Your Invoices Are Late or Sloppy
If you’re waiting weeks to send invoices or not following up on past-due payments, that’s not a systems problem. It’s a cash flow killer.
Money you earned but didn’t collect doesn’t count. That’s just IOUs stacked in your QuickBooks like Monopoly money.
You Don’t Need a Loan. You Need a Plan.
Cash flow problems don’t mean your business is failing. But they do mean you’re flying blind… and eventually, the plane runs out of fuel.
If profit looks good but cash still sucks, reach out before the numbers get any weirder.
We’ll find it, fix it, and make sure the money stays in your hands – not just your reports.