I am looking to purchase a landscaping maintenance company in California. I was told that their P&L Statements are prepared with the "Cash Accounting" methodology. I know cash accounting becomes an issue when you one is looking to interpret the productivity of the business as well as the true annual and monthly free cash flow.
Does anyone have any advice regarding how I should go about my initial analysis without ordering a QoE report? Is there a particular way I should be reviewing the financials, given that the accounting is currently utilizing the cash accounting principles?
Thank you in advance for your assistance.
Cash Vs. Accrual Accounting Analysis
More on Searchfunder
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.