Updated: Nov 12, 2022
You just need a great teacher!
Have you ever wondered why your profit and loss shows a net profit but then you sign into your bank account and the money is not there.
This is the very question Mary asked me 10 years ago. She had the first amazing year in her business because she had made about $53K in profits.
I was very excited for her because I knew how hard it was that year being her first year to make a profit compared to the two prior years.
Even though I was excited for Mary. She was not happy in the least because she had to pay taxes on this money that she just could not see in her bank account.
I sat down with Mary and reviewed with here where the money had gone and why it was not in her bank account.
She was not very happy about it but she understood.
Mastering your financials is not difficult it just takes the right teacher to make it happen. The profit and loss statement will show you what the net income is but what most business owners who do their own bookkeeping don't understand is that the net profit must pay additional business obligations that will not appear on the profit and loss and that my friend is why the net profit on the profit and loss does not add up to the cash in the bank.
Many of my clients master their financials and never worry about running out of cash after meeting with me, instead they increase cashflow & profit.
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