Cash Flow

Why profit and cash are not the same number: where the money actually came from and where it went.

Where the cash went in August

You made $3,843 profit in August, and cash rose $300. The gap between profit and cash is mostly owner draws (−$3,200) and card and sales tax timing (−$344).

Year to date, Jan–Aug

You made $26,170 profit so far this year, and cash rose $5,778. The gap between profit and cash is mostly owner draws (−$21,200) and card and sales tax timing (+$807).

Cash from operations vs cash in the bank

Operating cash is profit adjusted for timing; the bank line is what is actually there at each month end.

  • Cash at month end
  • Cash from operations

Statement of cash flows

By month, as QuickBooks reports it.

Statement of cash flows by month, Aug 2025 to Aug 2026
Aug 25Sep 25Oct 25Nov 25Dec 25Jan 26Feb 26Mar 26Apr 26May 26Jun 26Jul 26Aug 2613-mo total
Net Income2,8892,3222,9751,9051,3661,3552,5362,1283,5244,6964,5243,5643,84337,627
Chase Ink Business Card(834)(3)126(200)(43)441(413)634(491)427(393)391(276)(634)
Sales Tax Payable(62)(63)68(169)(88)159232434204(86)10(68)173
Total Adjustments to reconcile Net Income to Net Cash provided by operations:(896)(67)194(368)(131)600(390)877(488)630(479)402(344)(461)
Net cash provided by operating activities1,9932,2563,1691,5361,2351,9542,1453,0063,0375,3264,0453,9653,50037,167
Owner's Draw(1,200)(2,100)(2,600)(1,500)(1,200)(1,100)(2,000)(1,900)(3,000)(3,100)(3,900)(3,000)(3,200)(29,800)
Net cash provided by financing activities(1,200)(2,100)(2,600)(1,500)(1,200)(1,100)(2,000)(1,900)(3,000)(3,100)(3,900)(3,000)(3,200)(29,800)
Net cash increase for period79315656936358541451,106372,2261459653007,367
Cash at beginning of period5,7156,5086,6647,2337,2697,3048,1588,3049,4099,44611,67211,81712,7825,715
Cash at end of period6,5086,6647,2337,2697,3048,1588,3049,4099,44611,67211,81712,78213,08213,082