What's the difference between cash flow and profits?

Cash flow refers to the actual money coming in and going out of a business, like when you receive payments from customers or pay bills. It's like checking your bank balance to see if you can pay your bills today.

Profits, on the other hand, represent the amount a company earns after deducting all expenses from its revenue. It's like looking at your overall financial health over time, showing if your business is making more money than it's spending in the long run.

In simple terms, cash flow is about the money you have right now, while profits are about how well your business is doing overall.