Cash Flow vs Profit: feature by feature
| Cash Flow | Profit | |
|---|---|---|
| What it measures | Actual money coming in and out | Revenue minus costs for a period |
| Timing | When cash actually moves | When the sale or cost was recorded |
| Can be negative when... | ...you are waiting on customers to pay | ...costs exceed revenue |
| Danger sign | Negative cash despite profitability | Sustained losses over quarters |
| Managed by | Payment terms, stock timing, credit control | Pricing, cost control, sales volume |
How to choose
Choose Cash Flow if
- You are managing day-to-day survival and making sure the business can pay salaries and suppliers this month
Choose Profit if
- You are assessing whether the business model is sustainable over the medium term
More detail
The classic trap is giving 30-day credit to buyers while paying suppliers in 7 days. The income statement shows profit. The bank account shows nothing.
The cash-flow forecast calculator lets you map when money actually arrives against when it goes out, so you can spot a crunch weeks before it happens.
Free tools for this
Frequently asked questions
How do I improve cash flow without reducing profit?
Collect from customers faster, pay suppliers slightly slower, and hold less stock. The working capital calculator shows the impact.
Veira combines POS, M-Pesa, KRA eTIMS and inventory in one app with a free terminal. Book a demo and see how it fits your trade.