Where is my Money

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

One of the most common questions I’m asked when meeting a potential client for the first time is: “I’m doing all this business, and making a profit, but where is the money?” My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Where is the money? Well, cash has hiding places. Cash can hide in a number of places, but here are just a couple of places where cash can hide: Accounts Receivable is one, the second one is Capital Expenditures, another one is Principle Reduction of Loans, another one is Pre-Paid Expenses, Too Much Inventory, Paying Bills Too Fast, Stalk Holder Distributions. These hiding places don’t show up in the bottom line of a PnL, so you can be making money but the cash is in one or more of these hiding places. And remember, the most successful business owners know their numbers!

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