#86 - Making A Profit But Have No Cash? Here's Why

Your P&L says you made a profit… so why is there no money in the bank?In Episode 86 of The Meaning Business Podcast, Bruce Coudrey and Peter Spinda unpack one of the most common and misunderstood business problems: being profitable on paper but struggling with cash flow.Bruce shares a real story from his early business days, where sales were booming, the business was profitable, and yet the bank balance kept falling. The reason? Cash was tied up in debtors, stock, working capital and the growing costs of running the business.Bruce and Pete explain the difference between profit and cash flow, why rapid growth can actually create financial pressure, and how business owners can find where their money is really going.They also cover cash flow forecasting, managing debtors and inventory, understanding your balance sheet, improving staff efficiency, protecting money set aside for GST and tax, and why having cash in the bank doesn’t always mean that money is yours to spend.If you’ve ever looked at your profit and loss statement and thought, “Where’s the cash?”, this episode will help you understand exactly what’s happening.Build it better. Grow it smarter.The Meaning Business Podcast is your go-to show for insights on buying, growing and selling businesses.Hosted by business advisors Bruce Coudrey and Peter Spinda, each episode explores real-world strategies, lessons and opportunities to help business owners and entrepreneurs succeed.If you’re thinking about buying, selling or growing a business, the team at Benchmark Business Sales & Advisory can help guide you through the process.🌐 Learn more:https://linktr.ee/meaningbusinesspodcasthttps://benchmarkbusinessadvisory.com.au/meaning-business-podcast/