How do I check a frame shop’s cash flow in the weeks after the holiday rush?

Frame shops often collect a deposit when an order is placed and the balance at pickup, so the rush can look better than it is. Ask how many orders were still unfinished when the rush ended, and how much customer money is held against them. That money has to be turned into finished work, and the materials still have to be bought.

Then check the bills. Ask when suppliers for mouldings, glass and mat board expect payment, and whether the seller was catching up in the slow weeks. Look for late fees, stretched terms or one-time catch-up payments that make a quiet month look odd.

Finally, ask whether the accounting method shows deposits as income right away or once the job is delivered, because the choice changes how the quiet weeks appear. Have an accountant read the monthly figures with you and rebuild a simple cash view for the slow stretch. Compare more than one year if the records allow it. A single odd January may come from one large commercial order or a late supplier invoice. Ask the seller to explain each unusual week, then check the explanation against the bank statements. Write down what the shop would need to cover in a thin January, then see whether the records show it managed.

Key takeaways

• Compare weekly bank activity from the rush through the quiet weeks.
• Ask how many unfinished orders carry customer deposits.
• Check supplier terms and any catch-up payments in slow weeks.