{"id":297111,"date":"2026-01-20T11:54:29","date_gmt":"2026-01-19T22:54:29","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?post_type=sbh&#038;p=297111"},"modified":"2026-01-29T11:41:54","modified_gmt":"2026-01-28T22:41:54","slug":"cash-flow-vs-profit-and-loss","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/","title":{"rendered":"Cashflow vs Profit &#038; Loss Statement: Understanding the key differences"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|phone&#8221; _builder_version=&#8221;4.23&#8243; custom_padding_tablet=&#8221;&#8221; custom_padding_phone=&#8221;0px||||false|false&#8221; da_disable_devices=&#8221;off|off|off&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; _builder_version=&#8221;4.23&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; custom_padding=&#8221;||0px||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;table-contents&#8221; _builder_version=&#8221;4.23&#8243; background_color=&#8221;#f3f2f6&#8243; custom_padding=&#8221;25px||25px||true|false&#8221; sticky_position=&#8221;top&#8221; sticky_limit_bottom=&#8221;section&#8221; sticky_position_tablet=&#8221;top&#8221; sticky_position_phone=&#8221;none&#8221; sticky_position_last_edited=&#8221;on|desktop&#8221; pac_dcm_carousel_specific_module_num=&#8221;0&#8243; border_radii=&#8221;on|24px|24px|24px|24px&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.23&#8243; text_font=&#8221;||||||||&#8221; global_colors_info=&#8221;{}&#8221; background__hover_enabled=&#8221;on|desktop&#8221;][\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; pac_dcm_carousel_specific_module_num=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Intro&#8221; _builder_version=&#8221;4.27.5&#8243; header_2_font_size=&#8221;32px&#8221; header_2_font_size_tablet=&#8221;30px&#8221; header_2_font_size_phone=&#8221;26px&#8221; header_2_font_size_last_edited=&#8221;on|tablet&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>A common issue businesses face is posting a profit but having limited cash in the bank account to fund day-to-day operations. This confusion usually comes down to cash flow vs. profit and loss (P&amp;L). The cash flow statement and the profit and loss statement (also called an income statement) are both financial reports, but they cover different parts of your business&#8217;s financial health.<\/p>\n<p>When used together, these tools help business owners make more informed financial decisions to remain profitable and maintain sufficient cash to cover expenses and pay bills.<\/p>\n<h2>What a profit and loss statement actually shows<\/h2>\n<p>A profit and loss statement covers your business\u2019s financial performance over a defined period (month, quarter, year). Essentially, it\u2019s a financial document that shows you whether you\u2019re making or losing money.<\/p>\n<p>A normal profit and loss statement will include things like:<\/p>\n<ul>\n<li>Sales revenue (your business\u2019s revenue for that period).<\/li>\n<li>Cost of goods sold (COGS).<\/li>\n<li>Your gross profit (revenue minus goods sold).<\/li>\n<li>Operating expenses (rent, software, wages, insurance, marketing, etc.).<\/li>\n<li>Net income and net profit (or loss).<\/li>\n<\/ul>\n<p>Importantly, an income statement records revenue and costs using different accounting methods \u2014 usually accrual accounting \u2014 which means revenue is recorded when it\u2019s earned, not necessarily when cash received hits your account. That\u2019s why the loss statement measures profitability, not your day-to-day ability to pay bills.<\/p>\n<h2>\u00a0<\/h2>\n<h2>What a cash flow statement actually shows<\/h2>\n<p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/01\/Cash-flow-activities.png&#8221; alt=&#8221;3 cash flow activities are operating, investing, and financing&#8221; title_text=&#8221;Cash Flow Activities&#8221; align=&#8221;center&#8221; _builder_version=&#8221;4.27.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][et_pb_text _builder_version=&#8221;4.27.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>Where the P&amp;L focuses on profitability, a cash flow statement covers liquidity \u2014 your cash inflows and cash outflows, as well as the cash remaining at the end of the period.<br \/>Most cash flow statements are split into:<\/p>\n<ul>\n<li>Operating activities: Cash generated from day-to-day business operations.<\/li>\n<li>Investing activities: Things like equipment purchases \u2013 i.e. capital expenditures.<\/li>\n<li>Financing activities: Loans, owner contributions, repayments.<\/li>\n<\/ul>\n<p>An easy way to remember it is that the cash flow statement tells you whether you have sufficient cash to meet your obligations when they\u2019re due, even if you\u2019re technically profitable.<\/p>\n<h2>The differences that clear up everything<\/h2>\n<p>Here\u2019s the easiest way to explain cash flow versus P&amp;L:<\/p>\n<ul>\n<li><strong>Timing:<\/strong> P&amp;L shows revenue and costs when they\u2019re earned or incurred, even if payments are delayed. Cash flow tracks cash paid and cash received.<\/li>\n<li><strong>What\u2019s included:<\/strong> Profit and loss includes non-cash items, while cash flow includes only what changes your cash position.<\/li>\n<li><strong>Purpose:<\/strong> P&amp;L shows financial performance and net profit margin. The cash flow statement shows your day-to-day cash flow position in real time.<\/li>\n<li><strong>Best use:<\/strong> P&amp;L helps you stay on top of profit margins, pricing, expanding revenue sources, etc., while cash flow helps you manage spending.<\/li>\n<\/ul>\n<h2>Why your business can be profitable and still run out of cash<\/h2>\n<p>While you can have strong gross profit and a healthy net profit, it is still possible to have negative cash flow. What could be going wrong?<\/p>\n<h4>1. You made sales, but you haven\u2019t been paid yet<\/h4>\n<p>If you invoice customers on 14 or 30-day terms, your revenue might appear on the P&amp;L now, but the cash won\u2019t arrive until later. That gap sits in accounts receivable (the money customers owe you). Your P&amp;L can look great while your cash position is rather tight.<\/p>\n<h4>2. You paid big bills upfront<\/h4>\n<p>Maybe you stocked up on materials or bought new inventory. Those are real cash outflows today. Depending on how your books treat stock, the expense might not hit the P&amp;L immediately, but it can impact cash flow.<\/p>\n<h4>3. You invested in equipment<\/h4>\n<p>Buying a new laptop or vehicle is usually treated as a balance sheet item (an asset) instead of an immediate P&amp;L cost. So while your profit might look just fine, your cash balance drops because of capital expenditures.<\/p>\n<h4>4. Loan money can \u2018improve\u2019 cash without improving profits<\/h4>\n<p>Your bank balance rises (good for cash flow), but it doesn\u2019t increase your P&amp;L profit. If a business owner drew on a loan or personal funds to keep going, you might see positive cash flow for a short while, even if the actual revenue received isn\u2019t enough to cover ongoing costs.<\/p>\n<h2>Positive cash flow and negative cash flow<\/h2>\n<p><a href=\"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement\/\">Positive cash flow<\/a> means more cash came in than went out during the period. In everyday terms, positive cash flow means you generate enough cash to pay your bills and have a little breathing room.<\/p>\n<p>Negative cash flow means you spent more than you brought in. It can happen for both good reasons (growth, stocking up, new equipment) and bad reasons (low sales, rising costs, poor collections). Long-term negative cash flow may indicate unsustainable business conditions or practices that require serious attention.<\/p>\n<p>Many business owners look at free cash flow \u2014 the cash left after operating costs and necessary reinvestment \u2014 because it provides a clearer view of what the business can actually use for growth, debt reduction, dividends, and other priorities.<\/p>\n<h2>How to use both reports to make better decisions<\/h2>\n<p>You can use your profit and loss statement to:<\/p>\n<ul>\n<li>Track your business\u2019s financial performance over a set period.<\/li>\n<li>Figure out whether pricing covers all of your costs incurred and operating expenses.<\/li>\n<li>Watch trends in sales revenue, profit, net profit margin, etc.<\/li>\n<li>Check whether your company\u2019s business model is improving or slipping.<\/li>\n<\/ul>\n<p>You can use your cash flow statement to:<\/p>\n<ul>\n<li>See how much cash is available and where it\u2019s going.<\/li>\n<li>Spot upcoming moments (wages, GST, suppliers, and rent).<\/li>\n<li>Improve cash flow management by timing your spending and collections.<\/li>\n<li>See patterns of money flowing by seasonality, late payers, and slow months.<\/li>\n<\/ul>\n<h2>When to involve a small business accountant<\/h2>\n<p>If you\u2019re making decisions about hiring, funding, pricing changes or potential expansion, it\u2019s worth sitting down with a small business accountant who can walk you through your numbers.<\/p>\n<p>Bookkeepers and accountants can also help with forecasting and strategic tax planning, so you\u2019re never surprised by tax bills or timing problems.<\/p>\n<p>When looking at both, think of P&amp;L as \u2018performance\u2019 and cash flow as \u2018survival\u2019. P&amp;L tells you if you\u2019re building a profitable engine, and cash flow is the fuel that keeps you going.<\/p>\n<p>[\/et_pb_text][ba_social_share icon_bg=&#8221;#03002e&#8221; icon_padding=&#8221;10px|12px|10px|12px|true|true&#8221; layout=&#8221;classic&#8221; show_text=&#8221;off&#8221; btn_padding=&#8221;0px|0px|0px|0px|false|false&#8221; btn_bg_color=&#8221;RGBA(255,255,255,0)&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;50px||||false|false&#8221; custom_padding=&#8221;25px||||false|false&#8221; custom_css_before=&#8221; content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;&#8221; border_width_top_main=&#8221;1px&#8221; border_color_top_main=&#8221;#e4e4e4&#8243; border_radii_icon=&#8221;on|5px|5px|5px|5px&#8221; global_colors_info=&#8221;{}&#8221; custom_css_before_last_edited=&#8221;off|desktop&#8221;][ba_social_share_child _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;facebook&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;linkedin&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;email&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business&#8217;s finances.<\/p>\n","protected":false},"author":28,"featured_media":297113,"menu_order":0,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"sbh_category":[189],"class_list":["post-297111","sbh","type-sbh","status-publish","format-standard","has-post-thumbnail","hentry","sbh_category-cash-flow"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cashflow vs Profit &amp; Loss Statement: Key differences | Reckon NZ<\/title>\n<meta name=\"description\" content=\"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business&#039;s finances.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cashflow vs Profit &amp; Loss Statement: Understanding the key differences\" \/>\n<meta property=\"og:description\" content=\"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business&#039;s finances.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/\" \/>\n<meta property=\"og:site_name\" content=\"Reckon NZ\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/reckonhq\/\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-28T22:41:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"409\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@ReckonHQ\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/\"},\"author\":{\"name\":\"Simon Jones\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#\\\/schema\\\/person\\\/bee26de8317c43b49876cc4097f82155\"},\"headline\":\"Cashflow vs Profit &#038; Loss Statement: Understanding the key differences\",\"datePublished\":\"2026-01-19T22:54:29+00:00\",\"dateModified\":\"2026-01-28T22:41:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/\"},\"wordCount\":1513,\"publisher\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/Cash-flow-vs-profit-and-loss-statement-header.png.webp\",\"inLanguage\":\"en-NZ\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/\",\"name\":\"Cashflow vs Profit & Loss Statement: Key differences | Reckon NZ\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/Cash-flow-vs-profit-and-loss-statement-header.png.webp\",\"datePublished\":\"2026-01-19T22:54:29+00:00\",\"dateModified\":\"2026-01-28T22:41:54+00:00\",\"description\":\"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business's finances.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#breadcrumb\"},\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/Cash-flow-vs-profit-and-loss-statement-header.png.webp\",\"contentUrl\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/Cash-flow-vs-profit-and-loss-statement-header.png.webp\",\"width\":1200,\"height\":409},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/cash-flow-statement-what-is-it-and-examples\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Cash Flow\",\"item\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/small-business-resources\\\/cash-flow\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Cashflow vs Profit &#038; Loss Statement: Understanding the key differences\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#website\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/\",\"name\":\"Reckon NZ\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-NZ\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#organization\",\"name\":\"Reckon NZ\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/Short-Logo-copy.png\",\"contentUrl\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/Short-Logo-copy.png\",\"width\":800,\"height\":800,\"caption\":\"Reckon NZ\"},\"image\":{\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/reckonhq\\\/\",\"https:\\\/\\\/x.com\\\/ReckonHQ\",\"https:\\\/\\\/www.instagram.com\\\/reckonhq\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/reckon\\\/\",\"https:\\\/\\\/www.youtube.com\\\/user\\\/Reckonltd\",\"https:\\\/\\\/en.wikipedia.org\\\/wiki\\\/Reckon_(company)\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/#\\\/schema\\\/person\\\/bee26de8317c43b49876cc4097f82155\",\"name\":\"Simon Jones\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/Simon-Jones-150x150-1-1-96x96.png\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/Simon-Jones-150x150-1-1-96x96.png\",\"contentUrl\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/Simon-Jones-150x150-1-1-96x96.png\",\"caption\":\"Simon Jones\"},\"description\":\"Content Writer Simon has spent more than 15 years as a journalist and content marketer, covering a broad spectrum of topics for both print and digital mastheads. He specialises in finance and technology, with a particular interest in the intersection of AI and fintech.\",\"url\":\"https:\\\/\\\/www.reckon.com\\\/nz\\\/author\\\/simon-jones\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Cashflow vs Profit & Loss Statement: Key differences | Reckon NZ","description":"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business's finances.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/","og_locale":"en_US","og_type":"article","og_title":"Cashflow vs Profit & Loss Statement: Understanding the key differences","og_description":"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business's finances.","og_url":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/","og_site_name":"Reckon NZ","article_publisher":"https:\/\/www.facebook.com\/reckonhq\/","article_modified_time":"2026-01-28T22:41:54+00:00","og_image":[{"width":1200,"height":409,"url":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp","type":"image\/webp"}],"twitter_card":"summary_large_image","twitter_site":"@ReckonHQ","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#article","isPartOf":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/"},"author":{"name":"Simon Jones","@id":"https:\/\/www.reckon.com\/nz\/#\/schema\/person\/bee26de8317c43b49876cc4097f82155"},"headline":"Cashflow vs Profit &#038; Loss Statement: Understanding the key differences","datePublished":"2026-01-19T22:54:29+00:00","dateModified":"2026-01-28T22:41:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/"},"wordCount":1513,"publisher":{"@id":"https:\/\/www.reckon.com\/nz\/#organization"},"image":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#primaryimage"},"thumbnailUrl":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp","inLanguage":"en-NZ"},{"@type":"WebPage","@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/","url":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/","name":"Cashflow vs Profit & Loss Statement: Key differences | Reckon NZ","isPartOf":{"@id":"https:\/\/www.reckon.com\/nz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#primaryimage"},"image":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#primaryimage"},"thumbnailUrl":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp","datePublished":"2026-01-19T22:54:29+00:00","dateModified":"2026-01-28T22:41:54+00:00","description":"Understand the difference between cash flow and profit and loss, why each matters, and how both impact your business's finances.","breadcrumb":{"@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#breadcrumb"},"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#primaryimage","url":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp","contentUrl":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2026\/01\/Cash-flow-vs-profit-and-loss-statement-header.png.webp","width":1200,"height":409},{"@type":"BreadcrumbList","@id":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/cash-flow-statement-what-is-it-and-examples\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Cash Flow","item":"https:\/\/www.reckon.com\/nz\/small-business-resources\/cash-flow\/"},{"@type":"ListItem","position":2,"name":"Cashflow vs Profit &#038; Loss Statement: Understanding the key differences"}]},{"@type":"WebSite","@id":"https:\/\/www.reckon.com\/nz\/#website","url":"https:\/\/www.reckon.com\/nz\/","name":"Reckon NZ","description":"","publisher":{"@id":"https:\/\/www.reckon.com\/nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.reckon.com\/nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/www.reckon.com\/nz\/#organization","name":"Reckon NZ","url":"https:\/\/www.reckon.com\/nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/www.reckon.com\/nz\/#\/schema\/logo\/image\/","url":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2025\/01\/Short-Logo-copy.png","contentUrl":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2025\/01\/Short-Logo-copy.png","width":800,"height":800,"caption":"Reckon NZ"},"image":{"@id":"https:\/\/www.reckon.com\/nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/reckonhq\/","https:\/\/x.com\/ReckonHQ","https:\/\/www.instagram.com\/reckonhq\/","https:\/\/www.linkedin.com\/company\/reckon\/","https:\/\/www.youtube.com\/user\/Reckonltd","https:\/\/en.wikipedia.org\/wiki\/Reckon_(company)"]},{"@type":"Person","@id":"https:\/\/www.reckon.com\/nz\/#\/schema\/person\/bee26de8317c43b49876cc4097f82155","name":"Simon Jones","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2024\/08\/Simon-Jones-150x150-1-1-96x96.png","url":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2024\/08\/Simon-Jones-150x150-1-1-96x96.png","contentUrl":"https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2024\/08\/Simon-Jones-150x150-1-1-96x96.png","caption":"Simon Jones"},"description":"Content Writer Simon has spent more than 15 years as a journalist and content marketer, covering a broad spectrum of topics for both print and digital mastheads. He specialises in finance and technology, with a particular interest in the intersection of AI and fintech.","url":"https:\/\/www.reckon.com\/nz\/author\/simon-jones\/"}]}},"_links":{"self":[{"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/sbh\/297111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/sbh"}],"about":[{"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/types\/sbh"}],"author":[{"embeddable":true,"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/users\/28"}],"version-history":[{"count":0,"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/sbh\/297111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/media\/297113"}],"wp:attachment":[{"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/media?parent=297111"}],"wp:term":[{"taxonomy":"sbh_category","embeddable":true,"href":"https:\/\/www.reckon.com\/nz\/wp-json\/wp\/v2\/sbh_category?post=297111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}