Your business shows a profit. Why is cash tight?

Sales are not always collections

Revenue can be recognized before customers pay. Growing receivables can absorb cash even while reported sales and profit increase. Review collection timing and aging alongside the income statement.

Inventory uses cash before it becomes an expense

Purchasing inventory may require cash before the goods are sold. Carrying more stock can reduce cash availability even when the related cost has not yet flowed through profit.

Some cash obligations sit outside operating profit

Loan principal payments, equipment purchases, and owner distributions can reduce cash without appearing as ordinary operating expenses in the same way. Review these movements when reconciling profit to the bank balance.

A forecast makes timing visible

A practical cash forecast combines expected receipts with upcoming payments and other commitments. It helps owners identify timing gaps and evaluate options before a shortfall becomes urgent.

General business information; specific recommendations depend on your circumstances.