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Cash Flow Vs Profit - Which Is Actually King?

Cash flow and profit are two different financial parameters, both of which are important for running a successful business.

Cash flow is how much money is going into and out of your business at a given time: the payments you are receiving and the payments you are making. Cash flow impacts how much money you actually have available at any given time.

Profit is how much financial gain your company is making on its products or services. If you are bringing in more money than it costs to run your business, you are making a profit.

Cash flow and profit are both important measures of success for a business and can affect how stable your company is. They also intersect with other important corporate issues, especially when your company grows rapidly.

 

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Profit is how much financial gain your company is making on its products or services. If you are bringing in more money than it costs to run your business, you are making a profit.2

Cash flow and profit are both important measures of success for a business and can affect how stable your company is.3 They also intersect with other important corporate issues, especially when your company grows rapidly.