We understand the importance of analyzing the costs in excess of billing accounts and the impact on financial performance and collateral impacts. Progress billings and mechanic liens are also a key focus of our review.

We watch out for hidden collateral offsets buried in accrued expenses.

Lenders need to be careful of tooling invoices imbedded within the AR aging. We will determine if they have approved PPAP authorizations. The payables with tooling suppliers also need to be analyzed.

Inventory mix is crucial – need to analyze inventory mix by gauge and width

PACA lien rights can be a critical issue.

Need to review any master supply agreements to gauge the definition of potential inventory buy-back provisions.

An in depth review of payroll taxes is vital.

Inventory cost analysis at the item level if a consistent issue.

Unbilled receivables have become a growing element of this industry.

Deferred Revenue accounts need to be reviewed for maintenance contracts and billing practices.

Customer supplied inventory is a common practice in the field and we will evaluate the company’s accounting.