Profit does not mean that there is cash in the bank. A growing bank account does not mean that you are making a profit.
Surprised? You're not alone. Most schools, CPAs, news reports, etc. focus on a company’s earnings, profits, and sales. That’s because those same institutions are geared toward teaching, working for, and reporting for BIG big businesses and public companies.
But if you are a small business, your most important measurements for the next 3 months or so have to do with cash:
So don’t be fooled by “the establishment” into thinking “profit, profit, profit.”
Think: “Profit with sustainable cash flow!”
Let me know if “profit without cash” is a new concept to you, or if it’s not, how you learned about the concept!
Are you a cost center or do you provide a documented return on investment (ROI) for your clients?
Most companies, non-profits, and government institutions view accounting, bookkeeping, tax preparation, and financial analysis as an expense that needs to be endured. Because of this, they often look for a low-cost provider that meets a minimum standard, like a certification.
Examples would be a QuickBooks Advisor, accounting degree, or CPA or Chartered Accountant.
There are literally millions that have certifications of each type.
What if you could show an ROI to clients?
Show them that for every dollar, pound, Euro, lira, or peso they spend they get to save or make 5x, 10x, 100x, or even 1,000x what they spent?
The best way to do that is through advisory services which help improve a company's financial performance.