{"id":666,"date":"2021-10-18T00:25:34","date_gmt":"2021-10-18T00:25:34","guid":{"rendered":"https:\/\/www.agilisbooks.com.au\/?p=666"},"modified":"2021-10-18T03:33:16","modified_gmt":"2021-10-18T03:33:16","slug":"profit-or-cash-flow-which-one-should-you-focus-on","status":"publish","type":"post","link":"https:\/\/agilisbooks.com.au\/?p=666","title":{"rendered":"Profit or Cash Flow &#8211; Which One Should You Focus On?"},"content":{"rendered":"<h2><span style=\"color: #99cc00;\">Worried about your cash flow and the profitability of your business? Talk to Agilis Books. We can review your finances and highlight ways to improve your cash position.<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-667 aligncenter\" src=\"https:\/\/agilisbooks.com.au\/wp-content\/uploads\/2021\/10\/B-OCT-Blog-image-300x203.png\" alt=\"\" width=\"395\" height=\"267\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Turning a profit is at the heart of running any successful company -but should profits be the only financial focus if you&#8217;re looking to create a stable, long-term business?<\/span><\/p>\n<p><a href=\"https:\/\/fluidly.com\/blog\/what-is-cashflow-and-why-is-it-important\/\"><span style=\"font-weight: 400;\">Cash flow is the beating heart of your business<\/span><\/a><span style=\"font-weight: 400;\">. Without an even and predictable flow of cash into the company, you can&#8217;t cover your overheads, you can&#8217;t pay your employees and you can&#8217;t run your day-to-day operations \u2013 let alone think about expanding and growing the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what\u2019s needed is a\u00a0<\/span><a href=\"https:\/\/www.investopedia.com\/ask\/answers\/111714\/whats-more-important-cash-flow-or-profits.asp\"><span style=\"font-weight: 400;\">healthy cash flow position AND a good focus on driving profits<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping on top of the financial management of your business can be hard work, especially if you\u2019re new to accounting and the technical terms that are used to talk about money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you\u2019re going to be in control of your financial destiny, it\u2019s important to get your head around the important process of cash flow management. This is especially true in the current business landscape, where sales revenue may be less buoyant, cash can be tight, and the market is going through a challenging time.<\/span><\/p>\n<h3><\/h3>\n<p>&nbsp;<\/p>\n<h3><b>Understanding Your Finances\u00a0<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s look at 6 key points to understand about your finances:<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"color: #99cc00;\"><b>Profit is a by-product of a successful business\u00a0<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As the owner, you want to make profits, but profitability isn\u2019t the only goal. A business can easily be profitable, but also be highly unstable in the longer term. What you want is stability and consistent revenues.<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #99cc00;\"><b>Cashflow is the blood that keeps your business alive\u00a0<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Good revenues (income) serve to bring cash into the business. Without cash to cover your operating expenses, you have no means to keep the lights on in the business. So, cash really is king!<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #99cc00;\"><b>Know your cost base and overheads\u00a0<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The flipside of your cash flow position is your costs. In an ideal world, you want more cash inflows than cash outflows, so it\u2019s important to know your expenses and costs and to manage them carefully.<\/span><\/li>\n<\/ul>\n<h4><b><span style=\"color: #99cc00;\">Be proactive about spend management and easing expenditure<\/span>\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you can take action that reduces your spending, that is hugely positive for your cash flow position. Choose cheaper suppliers, negotiate better deals, and bring that cost base down.<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #99cc00;\"><b>Drive more revenue, through increased sales and marketing activity\u00a0<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you can increase your revenues, you also boost your cash flow. So, it\u2019s important to be proactive about running targeted sales and marketing campaigns to increase your sales.<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #99cc00;\"><b>Keep the cash flowing and the profits take care of themselves\u00a0<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you achieve the ideal cash flow position, the company sits on solid financial foundations, the cash is there for investment and the business can grow. It\u2019s that simple.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><b>Talk to Agilis Books about improving your cash flow management\u00a0<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re new to running a business, or a seasoned owner who needs some financial support, Agilis Books can give you the cashflow advice you need.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can review your finances, delve down into your cash flow and strategize ways to increase your cash income and reduce your cash expenses. It only takes a few small changes to achieve a far better cash flow position for your business \u2013 helping you maintain positive cash flow AND generate meaningful profits.<\/span><\/p>\n<p><a href=\"https:\/\/agilisbooks.com.au\/contact\/\"><span style=\"font-weight: 400;\">Contact Agilis Books today<\/span><\/a><span style=\"font-weight: 400;\">, to talk through your cash flow concerns.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><b>The blog was originally published by BOMA, but has had edits made by Agilis Books for the benefit of our readers.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Worried about your cash flow and the profitability of your business? Talk to Agilis Books. We can review your finances and highlight ways to improve your cash position. &nbsp;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,4],"tags":[],"class_list":["post-666","post","type-post","status-publish","format-standard","hentry","category-financial","category-small-business"],"_links":{"self":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts\/666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=666"}],"version-history":[{"count":0,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts\/666\/revisions"}],"wp:attachment":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}