In some businesses it is, but that is usually not the case. As soon as a business has receivables, payables, inventory, debt, or assets that it buys or sells, then profit does NOT equal cash flow. Then often you the owner, is drawing out cash that is also not recorded on the income statement. So as you can see … it can be complex.
So our first task is to establish if in fact you are profitable. It is very hard (but not impossible) to have great cash flow without great profit. So the question is how profitable are you? If you don’t know the answer to that, then that is your starting point. You can click here to watch a free video on understanding your financial statements.