Cash Is King for Small Bakery Businesses - Why Your Income Statement Shows a Profit, But Your Bank Account Is Empty

Episode Show Notes:

It’s the end of the month, and you’re sitting down to review your sales reports and Profit & Loss statement…

You open up Quickbooks or download the P&L that your bookkeeper or accountant sent over and see a profit. GREAT - pop the champagne, right?!

Not so fast … you hop over to your bank account, log in, and (record scratch) … your stomach drops. 

Sound familiar? 

You're not bad at math, and nobody is stealing from you. What you're experiencing is a cash flow gap — and it's one of the most disorienting, least-talked-about realities of running a bakery business (or really, ANY small business).

In this episode, we’re breaking down exactly why this happens and what you can do to avoid the gut-wrenching, stressful “cash flow gap” every month.

Key Takeaways:

• Why profit and cash are not the same thing — and why that distinction matters so much in a seasonal business like yours
• The four MOST common reasons bakery owners experience cash flow gaps (including a few you might not have considered)
• Why a profitable year can absolutely contain unprofitable months — and how to stop panicking when this happens to you
• Three practical things you can start doing right now to get ahead of cash flow crunches before they become crises

Resources + Links:

• Bakery Finance Essentials  — Ready to dig deeper? BFE includes a full cash flow planning system + spreadsheet for building  out a complete month-by-month financial picture for YOUR bakery business
• Free Bakery Profit Audit— a quick financial checkup to help you identify where your bakery stands right now when it comes to cash flow + profit
• Got a question you'd like me to answer on the podcast? Email me! hello@bakerybusinessacademy.com
• Join our Bakery Owners Facebook Group to connect with fellow bakers and continue the conversation

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