Cash Flow vs. Profit: A Plain-Language Glossary

Revenue vs profit vs cash flow — three numbers that can each look healthy while the other two are quietly falling apart. Most small business owners can tell you if they made a profit last month. Far fewer can tell you why the bank account doesn't reflect it. This glossary breaks down the terms that come up constantly in day-to-day operations but rarely get explained in plain language: cash flow, working capital, receivables, payables, burn rate, and runway. Each one gets a simple definition, why it matters for a small business specifically, and how it connects to the others. Who it's for: Small business owners and managers who understand their business but get lost when the numbers get technical — especially anyone who's looked at a healthy profit and loss statement and still wondered where the cash went. What you'll walk away with: A working vocabulary for talking about the financial health of your business, not just its revenue.