What is the difference between a business' cash flow and profit?
Author: Charly Applegate, Cash Flow Expert
Cash flow is the movement of money in and out of the business. It is commonly used in planning the funding requirement of the business, either on a short or long-term basis by forecasting the cash that will is expected to come in and go out of the business.
On the other hand, profit is basically defined as revenue minus costs. On other words, it is the difference between the amount of money that the business gets from selling a certain product and the amount spent from selling it.
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