Profit and cash are not the same thing. It's one of the most common and most frustrating surprises in business finance. Frank shows you both, and understanding the gap between them is key to managing your money well.

Profit is what's left after subtracting your business expenses from your revenue. It's a measure of whether your business is making money on paper.

Cash is what's actually sitting in your bank accounts right now, money you can spend today.

These two numbers diverge for a few common reasons.

Customers haven't paid you yet. If your accounting tool (like Xero or QuickBooks) records revenue when you raise an invoice, your profit figure includes money you're owed but haven't received. Frank reads your actual bank transactions, so it only sees cash once it lands.

Loan repayments. When you repay a business loan, cash leaves your account, but loan repayments aren't counted as an expense on your profit and loss. So your profit stays high while your bank balance drops.

Owner's drawings or dividends. If you're taking money out of the business as drawings or dividends, that reduces your cash but doesn't reduce your profit figure.

Tax obligations. GST, VAT, income tax, and similar obligations are collected or accrued throughout the year. That money may be sitting in your account and included in your balance, but it's already spoken for, it's not yours to spend.

Timing of expenses. You may have paid large expenses (rent, insurance, annual subscriptions) in advance. That cash has already gone out, reducing your bank balance, but the expense may be spread across future periods in your accounts.

To understand where your cash is going, look at the Transactions page. Filter by date range and review:

Showing profit but feeling cash-poor is normal; it usually means money is tied up in unpaid invoices, going toward loan repayments or drawings, or set aside for tax. Frank's transaction view is the best place to trace exactly where cash is moving so you can see the full picture.