Every business experiences occasional cash shortages. But, if you’re lucky, you may find a hidden pot of gold in your balance sheet using the cash gap. This metric is a function of the timing difference between when companies order materials and pay suppliers and when they receive payment from their customers. By focusing on three balance sheet accounts (inventory, receivables and payables) you can generate extra cash and lower financing costs. Contact us for help calculating your company’s cash gap and using it to manage working capital more efficiently.
