Objectives: Session 11 – Cash and Taxes

In this session you will learn about:

  • Cash and profits
  • Cash flow and cash balance
  • How your legal setup can affect your taxes
  • How a calendar year or fiscal year can affect your taxes
  • Types of business expenses to deduct from taxes
  • Online resources for tax questions


Critical content is cash flow and understanding the difference between cash and profits. This is vital.


Cash: Normally means banknotes and coins, as in paying in cash. The term is used in a business plan to represent the bank balance, or current account balance.

Cash Flow:  Cash coming into and flowing out of a business over a period of time.

Profit: Start with sales, subtract all costs of sales and all expenses; that equals profit before tax. Subtract tax to get net profit.