# RSS Show Notes

## The Inventory Cash Trap: Why Your Veterinary Practice Can Be Busy and Still Cash-Starved

A busy veterinary practice can have strong revenue and still feel short on cash. One often-overlooked reason is inventory: cash goes out before the item is used, sold, charged, collected, and reflected accurately in the financial statements.

In this episode, Anthony “Marlo” Barge explains how to trace inventory through the full cash chain: cash paid, item received, item stored, item used or sold, charge captured, invoice collected, and margin reported.

We look at practical examples involving pharmacy items, preventives, diets, laboratory supplies, and clinical supplies. We also walk through a four-view diagnostic that compares purchases, counts or valuation, practice-management-system usage and charges, and the general ledger.

A mismatch is not proof of theft or misconduct. It is a signal to investigate the workflow. The cause may involve purchasing, receiving, storage, units of measure, usage recording, charge capture, pricing or item mapping, counting, accounting classification, or unclear ownership.

The goal is not simply to carry the lowest possible inventory. The goal is to maintain the right level of inventory for patient care while protecting owner cash flow and practice profitability. Technology can improve visibility, but only when the underlying process, units, and responsibilities are clear.

If your practice is busy but cash remains tight, request a complimentary 20-minute Practice Profit X-Ray conversation and Profit X-Ray score. We can help identify the first financial question worth answering and determine whether an Inventory Cash Trap Scan is appropriate.

Presented by LAX Accounting Services.

Website: https://www.laxaccountingservices.com

Phone: 747-254-9033

Clean books create clear decisions. Clear decisions create stronger practices. Stronger practices protect the mission.

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