Episode 7: Cash Flow Isn’t Profit (and Why That Matters)
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Shownotes
Episode Overview
In Episode 7 of R Readiness Lens, Sheri Radler is joined by Nikki Mullins, Director of Client Services at R Accounting Group, for a practical conversation about one of the most common sources of stress for business owners: cash flow.
Together, Sheri and Nikki break down the difference between revenue, profit, and cash, and explain why profitable businesses can still feel broke. This episode reframes cash flow as an operational readiness issue, not a discipline problem, and walks through how timing, growth, and obligations collide in ways that catch even well run businesses off guard.
If you have ever looked at a positive Profit and Loss statement and still wondered where the money went, this episode will help you understand why and what to do about it.
Key Takeaways
Revenue, profit, and cash are not the same thing. Revenue can look impressive, profit validates the business model, and cash determines what decisions you can actually make today.
Cash stress is usually about timing, not failure. Payroll, taxes, and growth often collide at predictable moments.
Profitable businesses still close. Not because the model is wrong, but because cash cadence was not stabilized.
Growth can make cash feel worse before it feels better. Inventory, accounts receivable, and upfront costs create pressure long before collections arrive.
Monthly averages can hide cash reality. Large annual or quarterly expenses feel very different in real time than they do on a monthly P and L.
The balance sheet shows where the money went. Comparing this year to last year reveals shifts in cash, inventory, debt, and equity.
Your bank balance is a snapshot, not a plan. Cash flow forecasting shows where you are going, not just where you have been.
Simple cash flow tools create control. A basic weekly or 13 week cash flow forecast can dramatically reduce stress and reactionary decisions.
Timestamps
00:00 — Welcome and introducing the focus on cash flow
00:43 — Introducing Nikki Mullins and why client cash flow matters
01:30 — Revenue, profit, and cash explained
02:40 — Why owners feel broke even when they are profitable
03:02 — Payroll week, taxes, and timing collisions
04:20 — Why growth often increases cash pressure
05:20 — Accounts receivable, inventory, and fronting costs
06:45 — Lumpiness in expenses and why monthly averages lie
07:43 — Loan payments, owner draws, and where cash really goes
08:46 — Using the balance sheet to track cash movement
10:00 — Why bank balances create false confidence
11:07 — Real world example with payroll and machinery purchases
12:15 — Building a simple cash flow forecast
13:30 — Profit builds the future, cash builds the present
14:40 — Closing thoughts and preview of the next client episode
Mentioned Resources
R Accounting Group — Advisory support, resources, and systems for business owners ready to scale with intention.
Podcast: Subscribe to R Readiness Lens
Connect with Sheri on LinkedIn
Connect with Nikki on LinkedIn
What is next
If this episode resonated with you, share it with a fellow business owner or client who’s ready to turn structure into strategy. And don’t forget to follow R Readiness Lens for more conversations on business readiness, clarity, and growth.
