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Cash and profit are two very different things, and understanding the difference between them is one of the most important parts of knowing how financially healthy your business really is.

A business can have plenty of cash in the bank while making very little profit.

Equally, a profitable business can find itself struggling to pay its bills.

It sounds contradictory, but once you understand what each number is actually telling you, it makes much more sense.

For many doctors and consultants, income doesn’t come neatly from one employer and one payslip.

Alongside your main NHS salary, you might receive income from private practice, locum shifts, medico-legal work, teaching, consultancy or other professional activities.

Each income stream might seem relatively straightforward on its own.

The problem is that HMRC doesn’t look at each source of income in isolation.

A business can have record sales and still struggle with profitability. It can have cash in the bank today while facing significant bills next month. And it can look busy on the surface while margins are quietly being squeezed by rising costs.

For healthcare professionals, finances can become complicated quickly. Your income may change throughout your career. You might have several sources of income at the same time. There are tax considerations, NHS pension benefits, private work, practice finances and longer-term decisions around retirement.

Making Tax Digital is not designed to be a once-a-quarter scramble. The real aim is to make digital record keeping part of your normal routine, so future submissions become simpler and your financial information stays more useful throughout the year.

So, what happens now?