The recession has shifted the buyer-seller negotiation in favor of the buyer. Competing for the order seems to involve ever-more concessions by the seller. Even closing the sale doesn’t mean that the race is over. The baton gets relayed from sales to finance, and until payment clears there are a lot of potholes in the road to the bank.

You don’t need a degree in accounting to know when your company is squeezed for cash. If your total current assets (e.g., cash, receivables, inventory) are less than your total current liabilities (e.g., accounts payable, accrued expenses, loans and leases payable with a year) more often than not you have a problem. When the economy turns around, you hope to come out the other side. In the meantime, you may need a new set of tactics.

“In his expense report, one of our senior consultants has requested reimbursement for a couple of drinks that he purchased on his Amtrak trip back from a customer visit in NYC last week. Do we pay for that or does he?” I had a sense that the Controller was handing me a can of bayou […]

What’s your cash balance this morning? What’s it going to be tomorrow morning, or a week from today? How much revenue have you invoiced this month, and for the year to date? What does the receivables balance look like vs. the payables? On a day-to-day basis, you run your company on cash. You can’t afford to wait until the monthly financial statements are complete in order to get this information. In your business, the weekly numbers game is all about flashing the cash.