Double Your Profit Day #24 Cash Flow Secrets Every Business Owner Should Know!
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Aug 24, 2025
Dive into the complex world of cash flow management! Discover why understanding cash flow is crucial for business survival, illuminating the gap between profit on paper and actual cash in the bank. Learn about the three key financial reports every owner must master, including how to interpret the Statement of Cash Flows. Uncover actionable strategies to optimize your cash, negotiate better terms, and safeguard your financial health. This insightful discussion is essential for anyone wanting to enhance their business's financial acumen!
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question_answer ANECDOTE
Profit On Paper, Empty Bank Account
John Wilson recalls his dad being surprised that the accountant showed profit while the bank account looked empty.
That story illustrates the common gap between paper profit and real cash in the bank.
insights INSIGHT
Statement Of Cash Flows Bridges The Gap
Net profit on the P&L and cash in the bank differ because of timing and balance sheet movements.
The statement of cash flows explains how net profit translates into changes in cash via AR, AP, and debt activity.
volunteer_activism ADVICE
Use A Rolling 13‑Week Forecast
Track cash using a statement of cash flows and a cash flow forecast so you know when cash must leave the bank.
Use a rolling 13-week cash flow forecast to see upcoming drains and act to protect reserves.
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Welcome to Day 24 of the Double Your Profit Series
The go-to series for contractors, home service owners, and small business entrepreneurs. Today we’re diving into one of the most important — and often most confusing — financial topics in business: Cash Flow. It’s the reason so many owners scratch their heads at year-end when their accountant says, “Congrats, you made a profit,” but the checking account feels empty. That gap? That’s cash flow.
🧠 Why Cash Flow Matters There’s a huge difference between net profit on paper and the cash in your bank account. Cash flow explains what happened in between. Without understanding and managing it, you risk being “profitable” on paper but broke in reality.
💡 What You’ll Learn in This Episode:
The three key financial reports every owner must know: Profit & Loss, Balance Sheet, and Statement of Cash Flows
How to read the Statement of Cash Flows to see where your money actually went 💸This Episode is Brought to You by CFO Made Easy
Built a strong trades business? Let’s take it to $10M and beyond. CFO Made Easy offers part-time CFO services for home and trade service businesses—helping you boost cash flow, maximize profit per tech, and make clear growth decisions.
⚙️ The Big Picture Profit is theory. Cash is survival. If you don’t track it, optimize it, and protect it, you’ll always wonder where your money went. By forecasting ahead, negotiating terms, and stacking reserves, you give your business stability — and the freedom to grow without fear of running dry.
🔥 Think of this episode as your playbook for turning paper profit into real cash in the bank.
John Wilson, CEO of Wilson Companies Jack Carr, CEO of Rapid HVAC 📌 Disclaimer: Some links may include UTM parameters or affiliate relationships, meaning we may earn a commission if you make a purchase. Episodes may feature sponsors, but all opinions expressed are our own.
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