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 $11,275 profit in August, and cash rose $1,407. The gap between profit and cash is mostly owner draws (−$10,000) and card and sales tax timing (+$132).

Year to date, Jan–Aug

You made $97,690 profit so far this year, and cash rose $16,981. The gap between profit and cash is mostly owner draws (−$82,200) and card and sales tax timing (+$1,491).

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 Income13,65113,9568,2198,5117,5357,4338,94010,89314,70216,18214,55313,71211,275149,562
Chase Ink Business Card254(223)191(374)(135)1667840587(294)(82)(12)157355
Sales Tax Payable65(187)(176)(119)(141)44319316705(36)(189)(284)(25)292
Total Adjustments to reconcile Net Income to Net Cash provided by operations:319(410)16(492)(275)2103983561,292(331)(271)(295)132648
Net cash provided by operating activities13,97013,5468,2358,0187,2607,6439,33811,25015,99415,85214,28213,41611,407150,209
Owner's Draw(12,300)(13,400)(7,400)(8,800)(7,700)(7,100)(7,900)(7,900)(12,700)(12,800)(12,300)(11,500)(10,000)(131,800)
Net cash provided by financing activities(12,300)(13,400)(7,400)(8,800)(7,700)(7,100)(7,900)(7,900)(12,700)(12,800)(12,300)(11,500)(10,000)(131,800)
Net cash increase for period1,670146835(782)(440)5431,4383,3503,2943,0521,9821,9161,40718,409
Cash at beginning of period33,26834,93935,08435,91935,13734,69735,24036,67840,02843,32146,37348,35550,27133,268
Cash at end of period34,93935,08435,91935,13734,69735,24036,67840,02843,32146,37348,35550,27151,67851,678