Small Business Shared Interest Group

  • 1.  Revenue Is Not the Same as Profit

    Posted 05-07-2026 11:40 PM

    Many small businesses don't struggle because they lack sales.

    They struggle because they lack financial clarity.

    A business can sell every day, have money coming in, pay bills, buy inventory, and still end the month asking:

    "Where did the money go?"

    Revenue is not profit. A bank balance is not business performance. For small business owners, understanding the numbers does not mean becoming an accountant.

    It means knowing the basics:

    • What is coming in?
    • What is going out?
    • What is left?
    • Which costs are growing?
    • Which products or services are truly profitable?

    When these answers are not clear, decisions become guesswork.

    Strategic accounting can help small businesses see what is really happening, protect cash flow, improve margins, and make better decisions with confidence.

    Selling is important. But understanding the numbers is what keeps the business alive.



    ------------------------------
    Clécio Alder
    Accountant
    Manaus
    Brazil
    ------------------------------


  • 2.  RE: Revenue Is Not the Same as Profit

    Posted 05-16-2026 01:12 PM

    Hi Clécio,

    Thank you for sharing this perspective. This is very true. Many small business owners believe their business is healthy if revenue is flowing. A successful business starts with revenue, however unanticipated events, such as fluctuations in inventory levels, can quickly take cash flow from comfortable to not being able to make the payroll.

    Thanks for sharing!

    Jennifer



    ------------------------------
    Jennifer Pinder, CMA, MBA
    ------------------------------



  • 3.  RE: Revenue Is Not the Same as Profit

    Posted 05-17-2026 07:29 AM
    Very true. If your company is bleeding out cash due to inefficiencies, bad revenue models, bad cost structure, etc you can quickly be closing the doors.

    Having a good cost model for your product / revenue is critical
    Sent from my iPhone


    Original Message


  • 4.  RE: Revenue Is Not the Same as Profit

    Posted 05-20-2026 07:58 PM

    Absolutely, @James Ward! So many small businesses do not pay close enough attention to this. 

    When I had a retail business years ago, it received a crash course in how revenue can appear strong and rising inventory levels can quickly push you under. Understanding the fluctuations is critical.

    Will you be at the June conference in Tampa? If so, the SIG members plan to meetup on Monday evening at 7PM. We have not identified a location yet. 



    ------------------------------
    Jennifer Pinder, CMA, MBA
    ------------------------------

    Original Message


Related Content