One of my new clients is the result of a sudden death of the Controller/CFO. After a surgical procedure, he returned to work after a few weeks, worked a half day, went home and died later that evening. The bank was sympathetic for a short period of time – a very short period – and then began pressuring the company for their Quarterly financials, or risk losing its Line of Credit (LOC).

This company was in pretty good shape as the Controller was consistent in his accounting procedures and had a pretty good audit trail. We managed to close the financials within two weeks and satisfy the bank. The key word here is CONSISTENCY.

Is your bookkeeper/accountant consistent in how they apply transactions? If you are unsure, let me know and I can assist in ensuring it is.

Handling and Avoiding Crises

How Do You Define Cash Flow?

If your definition of cash flow is flawed, and you’re not tracking the right numbers, you may grow your company right into a cash crisis.

The 10 Absolutely Must Follow Cash Flow Rules

Everyone wants cash on hand at all times. Here are 10 rules to help you get there.

The Magic Number

Every business has a magic number. By employing his, our columnist didn’t overstaff this year.

Riding the Economic Roller Coaster

Tighten your seatbelt. Surviving the ups and downs of the world economy means keeping an eye on business finances.

When a Cash Crisis Strikes

Credibility with vendors, bankers, and other creditors is built slowly, but can be destroyed quickly if your company falls behind on payments. Know how to break the bad news to preserve your business’s relationships.

Hot Tip: Prepare for a Cash Crisis

How do you prep for a cash crisis? Wayne Karpoff, president of Myrias Software Corp., knew cash would be a problem late last year. His 15-employee, $1.5-million company dropped selling its products and became a full-time service business. So he built a contingency fund into his annual budget — an amount equal to three months’ worth of payroll. He got the idea when his bank suggested he set up a contingency fund to safeguard his mortgage payments in the event he found himself out of work. He dipped into the fund three times last year to float the company during project and payment delays.