Definitions help, but the difference becomes clearer when you look at a simple operating example.
Explanation
A sale can increase profit before the payment arrives. A supplier bill can reduce profit before the cash leaves. Timing, not just totals, creates the difference.
Real example
A business invoices £5,000 in March, gets paid in April, and pays a supplier bill in March for work sold earlier. The March profit and the March bank movement tell different stories.
What to do in practice
Use invoices, payments, bills, and reports together so the business can see both performance and liquidity without mixing them up.
Keep moving
Read more in the article library, review pricing, or start managing this in DII Accounts.