My business is in profit but where did all the cash go?
There are a number of reasons why a business may be profitable but has no cash assets.
- Money could be invested in fixed assets such as buildings or plant and machinery.
- Stock levels may have increased and money is therefore invested therein.
- Customers may be slow payers and funds are locked up in debtors.
- Liabilities may have been paid off earlier.
There are other reasons for the apparent lack of cash. If this is a worry to you, don't hesitate to contact us to discuss matters.