8: Profit vs. Cash Flow vs. Cash on Hand — The Differences You Need to Know to Reach Your Goals

Do you know the difference between profit vs. cash flow vs. cash on hand?You might have looked at your profit number but then wondered why your cash isn't saying the same thing. You're seemingly profitable but you're continuously running into depleted or nearly depleted cash.Profit, cash flow, and cash on hand are all different things and as your business grows and gets more complex with your income sources and expenses, it’s not enough to just know revenue and expenses. In this episode, you’ll understand what your profit margins should be for different aspects of your business so you can create the cash flow you need to sustain your business. You’ll also learn why understanding your cash flow is how you’ll be able to increase your cash on hand, which allows you to have business savings, pay off debt, and pay yourself more. 05:38 — Why you need to know your profit numbers more than revenue numbers 07:07 — Understanding your profit margin and where it should be08:32 —🖥️ Screenshare: Visualizing Your Revenue, Direct Costs, Operating Expenses, and Profit Margins11:04 — What you need to understand about cash flow and how it determines your cash on hand13:06 — 🖥️ Screenshare: Visualizing Your Starting Cash, Incoming and Outgoing Cash, and Cash on Hand16:26 — How to use the connection between profit and cash on hand to reach your business, lifestyle and legacy goals 📚MENTIONED IN THIS EPISODE•  https://lovelyfinancials.com/sunday 🎉Enter the Harmonious Wealth Hour Giveaway! 3 people will win a 1:1 Harmonious Wealth Hour call where we will identify your biggest financial goal for the next 12 months and create a plan for you to achieve it! Subscribe to Harmonious Wealth on YouTube and your favorite podcast app Leave a review on Apple PodcastsTake a screenshot of the review and submit in the Review Form here so we can email you if you win You have until Thursday, April 25th to enter and we'll select three winners,  who will be notified by email!💸Register for the Free Webinar: Your Revenue Goals Don't Matter If You Don't Have the Lifestyle and Legacy Plan to Show for Itlovelyfinancials.com/openhouse---Email Series - Heal your relationship with money and grow wealth through your business. Each week you'll receive tips on how to face your money, improve your profit, manage the money you have and, more importnately, harness the wealth within through your faith. Bookkeeping - Receive bookkeeping with NO tax surprisesProfit Planning Intensive - Increase your profit by 25%---Connect with Iyanna: YouTubeInstagramEmail Website