O'Reilly logo

FT Guide to Finance for Non-Financial Managers by Jo Haigh

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

5

Cash and Profit – Understand the Difference

One of the most important areas for anyone in business to understand is that profit and cash are not the same. Although both have relative importance, cash, or the availability of it, is by and large the difference between business success and business failure.

This chapter will consider not only the difference between profit and cash but also how the two are linked and how they can be manipulated and managed.

It will also explore some well-proven cash management processes and cash creation techniques that can have both personal and business value.

What is cash?

In business, cash is an asset and in the financial statements it is recorded in the balance sheet as a current asset.

Not all cash on ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required