Profit is simply the amount of money you have left over once you’ve paid all of your expenses. If you have more expenses than income, you have a loss. Pretty simple. Of course, there’s much more to profit and loss than numbers on paper. Your business can actually show a profit on paper, yet not have any cash. In fact, many profitable businesses go out of business each year because of negative cash flow.

How can you keep the cash flowing in your home business? By keeping good records, watching expenses and tracking the flow of cash in and out of your business. Your Income and Expense Worksheet will help you determine how much of the money you make you can keep.