Start with these questions
- What is profit?
- What is cash flow?
- Why can profit and cash differ?
Understanding the topic
Profit is income minus costs, while cash is the money currently available.
Why it matters to your business
A profitable business can still struggle to pay bills. Connect this idea to your own records and decisions, then review what changes when you apply it.
Practical example for a Ghanaian business
A Ghanaian wholesaler sells goods for GHS 1,000 that cost GHS 700, earning GHS 300 gross profit before other expenses. If the customer pays next month, today’s cash has not increased by GHS 1,000. The owner still needs cash for bills due this week.
Illustrative example. This does not describe a BrightEdge customer or promise a financial result.
Common mistakes
- Spending all sales receipts as if they were profit.
- Making a decision without checking the records and circumstances behind it.
Recommended actions
- List money received and money due this week.
- Write down the records or information you need and check any gaps.
- Choose who will complete the action, set a date and review the result.
Educational video
The video section is ready for the approved companion video. Read the explanation and complete the action above while video production is in progress.
General business education. Confirm current tax, legal and investment requirements before applying them to your circumstances.
Related BrightEdge support
Financial Reporting and Budgeting →