SEARCHERS - Do You Know What Proof-of-Cash Is?

April 17, 2024
by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA
Searchers - Are you unsure what the proof-of-cash (POC) in financial due diligence is? 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 Winston in Piscataway, NJ 08854, USA
from University of Toronto in Toronto, ON, Canada