CFO Consulting Partners

Experience, focus and integrity. CFO Consulting Partners improves shareholder value.

Featured News

  • Audit Stress? 7 Ways to Find Relief

  • About
    • About Us
    • Testimonials
  • Our Team
  • Services
  • Industries
  • Case Studies
    • Featured Case Studies
    • All Case Studies
  • News, Events, & Resources
  • Newsletters
  • Contact

Where Did My Cash Go?

November 17, 2021 By CFO Consulting Partners

By: Allan Tepper

Ever ask yourself, “Where did my cash go? I am profitable and yet my bank account is scraping bottom.
The answer may be because non-income items are draining your cash. These can come from capital improvements, sluggish cash receipts from sales, too quickly paying accounts payable, and many other reasons.
On the other hand, perhaps you are unprofitable and cash has not declined or even increased. Could get confusing and even lead an executive to make bad decisions. This phenomenon could happen should a line of credit offset declining cash from profits, a large receivable was just settled, a building was sold, a government grant was received, and many other types of situations.
So the question is, how would you find out what is happening? The answer is the cash flow statement. This statement brings together the income and balance sheet statements to show you what happened to your cash.
Of course, a given is that the busines generates a balance sheet. Too often, our firm sees small businesses that do not produce balance sheets, which makes preparing the cash flow statement exceedingly difficult.
Knowing what happened to your cash is critical in order to make proper decisions. I had a nonprofit client awhile back that received grant money that masked sustained losses. The organization did not use the cash flow statement, and hence blindly acted as if everything was in good shape. This eventually lead to a significant financial crisis and an erosion of trust in several senior executives by the board.
In summary, carefully prepare all three main financial (income, balance sheet and cash flow) statements. And spend the time to understand where the cash is coming from and going. I believe you will make more informed decisions and have a more profitable company as a result.

Filed Under: Allan Tepper, Featured, Newsletters

Subscribe to Our Newsletter

    Privacy Policy

    News & Events

    • Celebrating 15 Years in Business

      15 YEARS IN THE MAKING… We are happy to share …Read More »
    • C-Suite Fintech Advisory Workshop NYC Rebranded ! Fintech Workshop Advisory (Fin-WAVE) – Catch it !

      Join the group and prepare to attend on the 3rd …Read More »
    • CFO Consulting Partners is a proud sponsor of the Philadelphia chapter of the Financial Managers Society (FMS)

      On May 12, 2021 CFO Consulting Partners sponsored a virtual …Read More »
    • CFO Consulting Partners was a proud sponsor of the World Trade Center Greater Philadelphia 17th Annual Global Business Conference

      View the full recording by clicking HERE.Read More »
    • 17th Annual Global Business Conference (GBC)

      March 25, 2021 | 8:30am – 12:00pm | Virtual The World …Read More »
    Learn About Our Services
    View Our Industries

    Questions?

    Contact Us Today to learn more.

    XPX

    We are a proud sponsor of XPX. XPX is a multi-disciplinary community of professional advisors who work collaboratively to help owners build valuable businesses and assist them in preparing and executing a successful transition. Learn more...

    finaca-logo

    We are a proud member of FINACA. FINACA is a nationwide network of independent finance and accounting consulting firms focused on delivering exceptional client service. Learn more...

    Subscribe to our Newsletter

    Sign-Up Now

    Privacy Policy

    Search

    Copyright © 2022 CFO Consulting Partners | Princeton, NJ | New York, NY