Capital Insights

Working Capital Review: Remove Cash That Is Not Yours to Spend

Medro Advisors · Research and commentary from Don McClain

By Don McClain | Founder & Principal, Medro Advisors

A bank balance is not always a measure of discretionary operating cash. Separately identify customer deposits for unfinished work, amounts held for others and restricted balances using the business’s actual records and professional guidance. Do not count the same dollars as both project obligations and free cash for a new repayment. Reconcile unusual entries before using the balance in a financing discussion. Medro Advisors can help frame the business-funding review; the accountant and provider must assess the relevant treatment and requirements. This is a planning check, not a legal or accounting determination.
Archive source: undated.
Author: https://www.donmcclain.net/
Forthcoming FUNDED: https://thefundedbook.com/