The Profit Illusion — Why a £5,000 Profit Can Leave You £30,000 Short of Cash
A business makes a profitable sale. The P&L says £5,000 profit. But for 74 days, the bank account tells a completely different story. Step through the timeline day by day and see why profit and cash flow are not the same thing.
How to use
Step through 6 stages of a real business scenario. At each stage, see what the P&L says (profit) alongside what the bank says (cash). The gap between the two is where businesses get into trouble.
Understanding Your Results
This tool is designed to help you understand a specific aspect of your business finances. The results are based on general rules and typical scenarios. Your individual circumstances may differ, so use this as a starting point for further investigation or a conversation with a qualified professional.
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