Places Where Your Cash May Be Hiding

DEDHAM, Mass. - June 22, 2016 - PRLog -- Chief Financial Officer Michael Barbarita has shared where money can often hide and become unproductive in his latest blog post.  Michael writes that if cash is being tied up in ineffective places, then the business will become crippled. Drawing on his many experiences performing CFO services, he writes that cash can hide in several unproductive places including:

· Accounts Receivable-Cash gets tied up here when there is not a credit policy that the business owner adheres to.

· Prepaid Expenses-Cash gets tied up here when they pay for certain expenses too early in advance.

· Inventory-Cash gets tied up here when manufacturers have slow moving inventory that must be sold.

· Fixed Assets-Cash gets tied up here when the business pays cash for fixed assets.

· Accounts Payable-Cash gets tied up here when the business owner pays bills too quickly.

· The Cash Conversion Cycle is too slow-Cash will often get tied up if the business owner does not understand his/her cash conservation cycle.

· Lower Profit Margins-Cash can be hiding here if prices are too low.

· High Overhead-Cash can hide here if the business owner's salary is too high.

· Employee Theft-80% of theft is employee theft.

The full blog post can found at http://cfo-chief-financial-officer.blogspot.com/2012/08/do-you-know-where-your-cash-is.html.