What was the change in accounts receivable for Expense Reduction Analysts in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
of Noncontrolling Interest | | 4 | - | 2,468 | (2,468) | 1 4 | | Net Income | | - | | 1,142,947 | 8,779 | 1,151,726 | | BALANCE - DECEMBER 31, 2023 | 18,777,777 | $ 18,778 | $ 4,209,422 | $ 1,237,283 | $ 32,360 | $ 5,497,843 |
| 2023 | () | restated) 2022 | ||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | 277.7 | |||
| Net Income | $ | 1,151,726 | $ | 156,786 |
| Adjustments to Reconcile Net Income to Net Cash | ||||
| Provided (Used) by Operating Activities: | ||||
| Depreciation and Amortization | 16,176 | 8,120 | ||
| Noncash Operating Lease Expense |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the accounts receivable decreased by $257,417 in 2023. This figure is part of the consolidated statement of cash flows, specifically within the cash flows from operating activities. In 2022, the accounts receivable increased by $95,648.
Accounts receivable represents the money owed to Expense Reduction Analysts by its clients for services already provided. A decrease in accounts receivable suggests that the company collected more payments from its clients during 2023 compared to the previous year. This could be due to more efficient collection processes or changes in payment terms offered to clients.
For a prospective Expense Reduction Analysts franchisee, this information indicates how efficiently the company manages its cash flow. Monitoring changes in accounts receivable can help franchisees understand the financial health of the company and its ability to convert receivables into cash. A significant decrease in accounts receivable, as seen in 2023, could be a positive sign, but it's important to consider the reasons behind the change to fully understand its implications.