Free Money Hiding, Check Your Working Capital

Before you cut a single expense, look at how many days your cash is stuck in the business.

DSO, DPO, and DIO measure how long customers take to pay you, how long you take to pay suppliers, and how long inventory sits before it sells.

Together they set your cash conversion cycle, and every day you shave off releases real cash without raising a price or losing a customer.

For a business doing $5 million in revenue, one day of DSO is roughly $13,700 sitting in someone else’s bank account. Most owners chase margin with cost cuts that hurt, when tighter collections or renegotiated terms would free more cash with far less pain.

Tracking the three numbers monthly turns a bookkeeping output into a cash lever, which is exactly what makes finance a value-added function.

Find your cash conversion cycle this month, then pick one lever and move it five days.

Cross + Co provides value-added outcomes that will transform your finances. Our pricing model is a fixed monthly subscription, which includes tax filing. Email me to discuss!