finance
Working Capital Audit
Find 30-60 days of cash trapped in your cycle.
1-2 hours for first audit. Quarterly review of 30 min.
What it is
Analyzes AR aging, AP terms, and inventory turn to find working capital you didn't know was locked up.
When to use it
Quarterly. Especially powerful for businesses with $1M+ revenue.
How it works
- 1.AR aging: how many days does it take customers to pay on average
- 2.AP terms: how many days do you take to pay vendors
- 3.Inventory turn (if applicable): how many days of inventory you hold
- 4.Compare to industry benchmarks; find the worst offender
Outcome
Typical recovery: 15-30 days of working capital. For a $2M service business, that's $80K-$160K of cash unlocked.