Businesses thrive on cash flows, not on profit alone
Cash flow so much more important to measure rather than just in profit.
As a sole proprietor, a partnership, and in most cases S corporations, things like taxes do not show up on your income statement. Other things that don't show up on your income statement, but affect cash flow, are things like:
⚪️ Inventory purchases
⚪️ Loan payments
⚪️ Gift cards
⚪️ Taxes payable
⚪️ Credit cards due
⚪️ Capital contributions/distributions
If you’re only looking at your income statement you’re missing out on the majority of activity that is happening in your business.
There are so many moving pieces to the finances in your business, which is why it is so important to have a trust in CPA that can help you see the 30,000 foot view of your finances so that you can truly understand what is happening in your business.
If you’re only looking profit and loss statement, the level and rate at which you grow is limited.
We want you to grow which is why we help you understand the whole picture, not a fraction of it.