Cash flow a continuous movement of cash in and out of the business.
Profit the positive difference between a firm’s total sales revenue and its total costs of production. When a sale is made, this contributes towards paying the firm’s costs. Any sales beyond breakeven is profit.
Be careful: cash is not just cash (i.e., physical banknotes and coins) but also everything that can be expressed in form of cash, such as sales, bank loans, over heads, tax, insurance etc.
Note: cash flow and profit is not the same thing! Profit is calculated as total revenue minus total costs. Cash flow represents all the cash going in and out of the business.
