Why am I making money but never have any cash?
Profit and cash measure different things. Review receivables, inventory, debt payments, equipment purchases, taxes, and owner draws to see what used cash after sales were recorded.
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Start with the business question.
Find plain-English answers to common business questions. Start with a question, read a guide, or look up a term. Use the related resources to understand each topic in context and prepare a more focused review of your business records.
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“I have a business decision to make. What do these numbers tell me?”
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Search business questions, guides, lessons, definitions, payroll-tax information, and Skyline services.
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See all questions Questions business owners ask.
Start with what is happening in your business. You do not need to know the accounting term.
How much cash should my business keep in the bank?
There is no responsible universal cash target. Estimate a cushion from your payroll and fixed commitments, collection timing, seasonality, planned purchases, debt service, taxes, a…
Read the guideHow do I know if my business is actually profitable?
Use a current, reconciled income statement and examine revenue, direct costs, operating expenses, owner compensation, interest, and taxes together. Compare the result with the prio…
Read the guideWhat's the difference between profit and cash flow?
Profit is the revenue left after expenses are recognized; cash flow tracks money actually moving into and out of the bank. A sale can increase profit before the customer pays, whil…
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Cash FlowProfitabilityHiring & PayrollGrowthPricing & MarginsDebt & FinancingFinancial ReportsBookkeepingControllers & CFOsBudgeting & ForecastingExpansionEquipment & Major Purchases
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Very Small & Growing BusinessKeep up with the numbers as the business and team grow.$5M–$10M BusinessConnect reports and cash decisions as the business adds people.$10M–$20M+ BusinessBring more structure to a larger team and more complex decisions.Questions Owners Are Embarrassed to AskAsk a business question and find a place to start.
More detail
View all lessons Guides for common business questions.
Each guide starts with a direct answer, then explains what else to consider.
Guide
Why Profit and Cash Are Different
A practical way to reconcile a profitable income statement with a bank balance that feels too low.
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How to Read Financial Statements Without Getting Lost
A short, owner-focused reading order for the P&L, balance sheet, and cash-flow statement.
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Build a Cash Forecast a Small Business Can Actually Use
How to look ahead for payroll, taxes, supplier payments, and customer receipts without pretending the future is certain.
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Can the Business Afford to Hire?
A decision framework that includes the full cash and operational effect of a new employee.
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How to Tell Whether the Business Is Actually Profitable
A grounded profitability review that separates accounting profit from the economics of customers, jobs, products, and owners’ time.
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Pricing and Margins: Find Out What Each Sale Leaves Behind
A way to test pricing decisions using cost behavior, customer economics, capacity, and cash—not a magic margin percentage.
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Controller or CFO? Match the Role to the Problem
A plain-English distinction between accounting control and forward-looking financial leadership.
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Growth Can Consume Cash: Plan the Working-Capital Need
How to examine receivables, inventory, payables, capacity, and funding before faster sales create a squeeze.
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Can the Business Afford Equipment or a Major Purchase?
A decision checklist for comparing a purchase, lease, financing, or waiting without confusing profit with cash.
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How Much Debt Can the Business Safely Handle?
A practical debt review focused on cash timing, resilience, covenants, and purpose rather than one ratio.
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Buying a Business: Financial Due Diligence Before the Deal
What to verify before relying on a seller’s story, forecast, or asking price.
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Preparing a Business Financially for Sale
A multi-year-minded cleanup and readiness plan that makes the business easier to understand without promising a valuation outcome.
Read guideNO ACCOUNTING
BACKGROUND REQUIRED
BACKGROUND REQUIRED
For owners & managers
Understand the numbers behind your business.
Short lessons explain reports, cash, margins, and common accounting terms.
View the lessonsSee the shape of the businessHow to read a P&L in 10 minutesUse the income statement to move from sales to the money the business actually kept.See what the business owns and owesHow to read a balance sheetRead the balance sheet as a snapshot of resources, obligations, and the owner’s remaining interest.Follow the moneyHow to read a cash-flow statementSeparate cash generated by operations from cash tied up in investing and financing.
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