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    can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely diff
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    Small business owners soon learn that Cash Flow and Profit are not one and the same thing. The two may be related but are not always in concert. There can be high profits reported during a period of extremely tight cash flow and low profits reported during a cash rich period.

    Profitability is based on invoicing and the relationship of costs, either expended or accrued, to those sales. The actual payment of expenses or receipt of invoice payments can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely diffe

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    but are not always in concert. There can be high profits reported during a period of extremely tight cash flow and low profits reported during a cash rich period.

    Profitability is based on invoicing and the relationship of costs, either expended or accrued, to those sales. The actual payment of expenses or receipt of invoice payments can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely diff

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    d low profits reported during a cash rich period.

    Profitability is based on invoicing and the relationship of costs, either expended or accrued, to those sales. The actual payment of expenses or receipt of invoice payments can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely diff

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    f costs, either expended or accrued, to those sales. The actual payment of expenses or receipt of invoice payments can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely diff
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    can, and often do, occur in periods different that when the sales occurred, so that cash flow can be widely different from reported profit in any period.

    Cash Flow is based on changes in cash balance and can be affected by changes in assets that don’t affect profitability. Allowing inventories to build or accounts receivable to go uncollected and grow can have a tremendous cash draining effect on the business. In effect you are converting cash to an investment in these other assets.

    During a period of strong growth even a very profitable business can

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