Why is profit not equal to the bank balance?

Profit represents the difference between total revenues and total expenses over a specific period, reflecting a company's financial performance. However, the bank balance includes actual cash available, which can be affected by factors like outstanding invoices, accrued expenses, and cash flow timing. As a result, a business can be profitable on paper but still have a low bank balance due to delayed cash inflows or significant expenses. Thus, profit and bank balance are related but distinct financial metrics.