http://www.accountantnorwalk.com/can-somebody-explains-the-difference-of-cash-flow-and-accounting-profit/ A Norwalk Accountant Group Sun, 11 Apr 2010 17:39:16 +0000 hourly 1 http://wordpress.org/?v= http://www.accountantnorwalk.com/can-somebody-explains-the-difference-of-cash-flow-and-accounting-profit/comment-page-1/#comment-373 GI Sun, 22 Nov 2009 15:24:55 +0000 http://www.accountantnorwalk.com/can-somebody-explains-the-difference-of-cash-flow-and-accounting-profit/#comment-373 If you are speaking in regards to business; Cash flow could be described as the total amount of funds available to operate your business. This could include funds provided through bank lending as well as sales or additional revenue created by service fees, operational fess etc... Acounting profit would be the reported amount of "Profit" after calcualting your books against your sales and operational expenses. Once you have figured in all associated cost to a service or product, paid the overhead bills, insurances and such; the remainding revenue would be reported as profit. If you are speaking in regards to business; Cash flow could be described as the total amount of funds available to operate your business. This could include funds provided through bank lending as well as sales or additional revenue created by service fees, operational fess etc…
Acounting profit would be the reported amount of “Profit” after calcualting your books against your sales and operational expenses. Once you have figured in all associated cost to a service or product, paid the overhead bills, insurances and such; the remainding revenue would be reported as profit.

]]> http://www.accountantnorwalk.com/can-somebody-explains-the-difference-of-cash-flow-and-accounting-profit/comment-page-1/#comment-372 dean y Sun, 22 Nov 2009 15:22:42 +0000 http://www.accountantnorwalk.com/can-somebody-explains-the-difference-of-cash-flow-and-accounting-profit/#comment-372 Cash flow is actual money. Accounting profit is an imaginary number that can be moved around by changing inventory methods, accrual vs. cash, depreciation, etc. . Cash flow is actual money.
Accounting profit is an imaginary number that can be moved around by changing inventory methods, accrual vs. cash, depreciation, etc.
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