Profitable-but-cash-strapped? You’re not alone.

Ever look at your profit and loss statement and think, “We’re doing great!”—only to open your bank account and wonder where the money actually is? You’re not crazy. You’re likely running into a common business issue: cash flow problems.

At Auer CPA, we hear this from profitable-but-cash-strapped business owners all the time. It’s frustrating, confusing, and it can even feel like you’re doing something wrong (you’re not). Let’s break it down in plain language and talk about how to get your cash flow in a healthier spot.

Profit vs. Cash Flow: What’s the Difference, Really?

Think of it like this:

Profit is like a report card—it shows how you did last quarter.
Cash flow is like your wallet—it tells you how much you have on hand right now.

You can be “profitable” because your sales are up and you’re technically earning more than you’re spending, but if your customers aren’t paying quickly or your bills hit all at once, your wallet could still be empty.

Why You’re Profitable-but-Cash-Strapped

Let’s talk about a few real-world scenarios we see all the time:

  1. Tighten Up Your Invoicing Game
     Send invoices right away, make it easy for people to pay you, and don’t be shy about following up. The faster you get paid, the better your cash flow.
  2. Take Advantage of Payment Terms
     If a vendor gives you 30 days, use it. There’s no prize for paying on Day 1 if it puts you in a cash bind.
  3. Create a Cash Flow Forecast
     Think of this like a money calendar. What’s coming in and going out each week? When you see the gaps ahead of time, you can plan around them.
  4. Watch Your Spending
     Before you buy that new tool, service, or stock up on inventory, ask: “Is this going to help me now, or is it going to sit for a while?”
  5. Keep Some Cash in Reserve
     Even just a month or two of cushion can make a huge difference when something unexpected pops up.

 

how to get your cash flow in a healthier spot

Okay, So How Do I Fix It?

Here are a few steps that can make a real difference:

  • Tighten Up Your Invoicing Game
     Send invoices right away, make it easy for people to pay you, and don’t be shy about following up. The faster you get paid, the better your cash flow.
  • Take Advantage of Payment Terms
     If a vendor gives you 30 days, use it. There’s no prize for paying on Day 1 if it puts you in a cash bind.
  • Create a Cash Flow Forecast
     Think of this like a money calendar. What’s coming in and going out each week? When you see the gaps ahead of time, you can plan around them.
  • Watch Your Spending
     Before you buy that new tool, service, or stock up on inventory, ask: “Is this going to help me now, or is it going to sit for a while?”
  • Keep Some Cash in Reserve
     Even just a month or two of cushion can make a huge difference when something unexpected pops up.

You Don’t Have to Do This Alone

Let’s be real: managing cash flow isn’t just about numbers—it’s about peace of mind. And when you’re trying to juggle everything else in your business, that peace can feel hard to come by.

That’s where Auer CPA comes in. We don’t just hand you reports and walk away. We help you understand what your numbers are actually saying—and how to use them to make better decisions. We’ll work with you to set realistic cash flow goals, build habits that keep your business steady, and troubleshoot when things get off track.

If you’re profitable-but-cash-strapped, you don’t have to figure this out alone. We’ve got your back.

Reach out today and let’s talk about getting your cash flow in a better place, so you can focus on what you do best.

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