Profit Vs Cash: Behind The Scenes

In this week’s episode of the UFD podcast I am talking about something that I am really passionate about and addressing a challenge I see far too many of my clients facing.

Your business is showing healthy profits on paper, but somehow your bank account isn't reflecting that success. If you've ever found yourself scratching your head at this disconnect, this episode is for you.

I wanted to deep dive into why this happens, especially for those of you who've scaled to seven figures. It's that moment when you look at your P&L statement showing impressive profits but then glance at your bank balance and think "where did all the money go?" Been there myself, and it's exactly what prompted me to start Ultimate FD.

Throughout this episode, I unpack the crucial difference between accounting profit and actual cash in your business. The accounting principles that recognise revenue before you've been paid can create this illusion of profitability while you're still chasing payments.

One thing I'm particularly proud of is my approach to credit control. I've learned (sometimes the hard way!) that having strict payment processes isn't being difficult - it's just good business sense. When I implemented proper credit control systems, the difference to my cash position was night and day.

Looking back at my own journey over the past year, I've seen tremendous growth in both revenue and team size at Ultimate FD. But that growth came with its own cash flow challenges that forced me to practice what I preach. The strategies I shared are the exact ones that helped me navigate that expansion.

Remember, cash really is king. You can have the most profitable business on paper, but without cash, you're vulnerable. Hope this episode helps you bridge that gap between your profit figures and your bank balance!

Drop me a message on socials if you've experienced this profit/cash disconnect in your business or if you have questions about implementing any of the strategies I discussed.

‍

👉 DOWNLOAD A COPY OF OUR BOOK SMALL BUSINESS BIG PROFIT FOR FREE: https://ultimate-fd.webflow.io/small-business-big-profit

👉 FOUR PART TAX TALK SERIES NOW LIVE! FOUR PART SERIES! Most entrepreneurs pay far too much tax, or spend too much time worrying about the wrong things. This is why we created the Tax Talks Series: From Start to Sell. This is a must listen for any entrepreneur to understand all the challenges they will face from a tax perspective as they go on their entrepreneurial journey. Go to our Tax Talks page to gain access to the four part series FREE OF CHARGE.

‍

‍