Topic hub
Cashflow
Profit and cash are not the same thing. A business can be profitable on the income statement and still go under because of timing. This hub covers gross margin, net profit, payment timing, and the small leaks that quietly drain margin.
Start with the tool
Run this in five minutes to get a concrete number or draft.
Read the guides
Plain-English explainers for the questions that come up most often in cashflow.
How to calculate gross margin vs net profit
A worked example of the two numbers every owner should know — what they include, what they hide, and how to use both to make decisions.
Gross margin vs net profit, explained
Two of the most-confused numbers in small business finance — what each one tells you and which to optimize first.
Key terms
The vocabulary you will run into in tools, contracts, and statements.
Editorial insights
Common mistakes and the reasoning behind the numbers.
Common questions
- What is the difference between profit and cashflow?
- Profit is revenue minus cost over a period. Cashflow is when that money actually arrives and leaves your account. A profitable business with 60-day payment terms can still run out of cash.
- What margin should I aim for?
- Service businesses typically target 20–40% net margin, product businesses 10–25%. The Profit Leak Analyzer shows yours and ranks the cost lines eating it.
- How often should I review margin?
- Monthly. Anything longer hides seasonality and lets quiet cost creep go unnoticed.