Are you unsure what the proof-of-cash (POC) in financial due diligence is?
November 19, 2024
by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA
POC gives you the security that the numbers in Excel from the seller are backed up by cash in the bank.
How 5-step overview of how we do your proof of cash:
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Analyze revenue and expenses, comparing them to the business' cash deposits on bank statements.
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Refine analysis timing differences between when the cash was posted at the bank and when it was recognized in the financials.
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Further refine accrual accounting adjustments.
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Check for correlation between revenue and cash withdrawals.
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Review bank documents for irregularities and red flags.
Anyone can put numbers in Excel. Get a proof-of-cash to check that the cash in the bank matches.
from The University of Texas at Austin in Austin, TX, USA