Why is my business profitable but I have no cash?

This is the most common frustration for business owners. Profit is an accounting metric (Revenue minus Expenses), while Cash Flow is the actual movement of money. You might be profitable but cash-poor because: 1. Your customers haven't paid their invoices yet (Accounts Receivable). 2. You just bought a large amount of inventory. 3. You are paying down debt principal, which doesn't show up on a P&L.