# Why Cash Flow — Not Profit — Kills Contractors
Plenty of **profitable** construction companies go broke. Why? They run out of **cash**. Profit is an accounting result on paper; cash is what actually pays your people and suppliers.
## The difference
- **Profit** — revenue minus costs, earned over the job.
- **Cash** — money actually in the bank, right now.
You can show a profit on a job and still be unable to make payroll, because the money is tied up in work you've done but haven't been paid for yet. **Growth makes it worse** — every new job consumes cash before it returns any.
**Takeaway:** You can be profitable and still go broke — cash, not profit, pays the bills.
> *Educational content — not legal, financial, or accounting advice. Run your numbers with your CPA.*
