Episode
31
Thu, 13 Aug 2026 12:05:00 +0000
One of the most confusing moments for business owners happens when their accountant tells them the business made a healthy profit but there's very little money left in the bank.
How is that possible?
In this podcast episode, Dominic Rubino sits down with Fractional CFO Natalia Zacharin to explain why profit and cash flow are two completely different financial measurements.
Natalia explains that a Profit & Loss statement only shows revenue and expenses. It doesn't show loan principal payments, old debt repayments, owner distributions, or other uses of cash. As a result, a business can look profitable on paper while experiencing serious cash shortages.
The conversation also explores common financial challenges for contractors and growing businesses, including labor efficiency, project profitability, pricing, and why forecasting future performance is more valuable than simply reviewing historical financial statements. Rather than reacting when problems appear, a forward-looking financial strategy allows business owners to make adjustments months before cash becomes an issue.
Another important takeaway is the role of data-driven decision making. Instead of relying on emotion, successful business owners use financial information, project reporting, and clearly defined company values to guide pricing, hiring, and investment decisions. According to Natalia, combining strong financial discipline with a healthy company culture creates better long-term profitability.
Whether you're running a construction company, service business, or growing organization, understanding where your cash is going is one of the fastest ways to build a healthier, more profitable business.
More about Natalia Zacharin: Linkedin Facebook
Connect with Us:
.svg.webp)
