It’s easy to make this mistake. Your business is running just fine and for whatever reason you take money out of the business and cripple it. Yes, the reason your business is crippled is because you can not meet the Working Capital Requirement (WCR) for your business. Wouldn’t it be nice to know what that number is? If you look online you can find a simple equation to tell you what your current working capital is or even a general idea what the WCR should be but the fact is that number is different for every business!
WCR = [Accounts Receivable + Inventory + Prepaid Expenses] – [Accounts Payable + Accruals]
Not only can BOA find the exact number for your business but we can help you set up procedures in your business to help you stay close to that number without allowing a ton of extra money to just sit in an account not working for you. Contact me for more free information on WCR. One of the most important numbers in your business!