Most business owners assume that profit means safety — that as long as they’re selling, they’re fine.

But cash flow doesn’t care about your income statement.

I’ve seen companies with 30% profit margins go broke because they didn’t understand one simple thing:

Timing kills businesses, not numbers.

Here’s what I mean.

1. Profit is just an idea — cash is reality

You can “earn” $50,000 in sales this month and still have $0 in your account if customers haven’t paid yet.

Your P&L shows income; your bank balance shows truth.

2. Growth makes cash flow worse before it gets better

When your business grows, you buy inventory, hire people, and pay vendors before you get paid.

That gap — sometimes just a few weeks — is where most small companies suffocate.

3. The fix is boring but powerful

• Forecast cash weekly, not monthly.

• Separate “due to pay” from “want to pay.”

• Use an ERP or dashboard (I prefer ERPNext) that ties your invoices, payables, and bank feeds together automatically.

Once you can see your future cash balance, you can plan around it instead of guessing.

4. Tools help, but habits matter more

An ERP won’t save bad discipline. You still need to review cash flow regularly, set thresholds, and build a safety buffer.

Most of my clients start with spreadsheets, but once the volume grows, automation becomes the difference between sleeping well and waking up to a declined payment.

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If you want to get a handle on cash flow, start with visibility — even a simple 13-week forecast can change how you make decisions. Here is a template to help you out in your journey.

https://wececonomics.gumroad.com/l/ppfqtx

And if you’re ready to stop guessing, that’s where Wececonomics comes in — we help businesses turn numbers into strategy.