Charles Wiggin is an entrepreneurial accountant who trained with KPMG and after 10 years in business founded www.accountingservicesonline.net in 2003. A former Olympic Medallist he is passionate about helping clients maximise the performance of their business.
Responding to DJKL
Two points: I agree with your point. Firstly for our cloud based clients who are receiving monthly accounts we include a working capital figure which includes debtor and creditor days stock and cash. This allows management to monitor changing trends in working capital with changes in performance.
Secondly I would suggest having an imprecise term in a contract as "normal" would need to be supported by a calculated range at least. How much "cash" is left in is down to negotiation at the point of sale and this figure included in the final contract.