Why revenue is not profit
Your bank says one thing. Your margins say another. Here's why — and what to do about it.
The timing gap
You buy ingredients on Monday. You sell coffee all week. Your bank balance dips before revenue catches up. That's a timing gap — not a crisis, but if you only watch your bank balance, it looks like one.
Cash flow and profit run on different clocks. Purchases hit your bank immediately. Revenue trickles in over days or weeks. The gap between them is perfectly normal, but it hides your real performance.
Example: Maria's Cafe
On Tuesday the bank says you're down. By Friday the numbers tell a different story.
Loan repayment vs expense
The principal leaves your bank but isn't a cost — it's paying off an asset.
The principal gap
Loan repayments reduce your cash but they're not entirely an expense. Only the interest portion is a cost. The principal repayment is you paying off a liability — your profit is unaffected, but your bank balance drops.
Owner's draw works the same way. Taking money out of the business reduces cash available but doesn't change the business's earning power.
Shadow expenses
The cost of the coffee you sold today was locked in when you bought the beans last week. These "shadow expenses" — the cost of goods sold (COGS) — don't appear on your bank statement the day you sell.
Intensifly estimates COGS from your purchases and recipes (bills of materials), so you see the true cost of every sale as it happens. Not after your accountant processes it weeks later.
COGS estimation
The €1.35 was paid days ago. Today's bank balance doesn't show it.
How Intensifly shows both sides
Cash reality and profit reality, side by side — so you always know which number you're looking at.
Cash Flow (Reality)
Actual bank movements. High volatility — bulk purchases cause dips.
Source: transactions
Profit (Earning Power)
True margins from your cost model. Smoothed — shows earning power over time.
Source: recipes + purchase history
"Good profit + low cash" is completely normal. Intensifly shows you why so you don't panic.
See both numbers for your business
Start a conversation and get your first cashflow calendar in minutes.
Start Free — 10 questions includedFree to start. Upgrade when you need more.