Accounting & bank interview = significance & importance

I won't go into the details of the legal distinctions here, but the accruals and deferrals in business accounting are, in my view, a source of misinterpretation if they are not carefully handled.

Income-expenditure statements (EAR) are based on pure payment flows. If there are shifts in the payment habits of customers and, on the other hand, expenses are incurred differently in cash terms than the year before, comparisons are difficult and the informative value decreases.

But even with double-entry bookkeeping, verifiability and comparisons are not always possible if internal records are not accurate.

What does this mean in concrete terms?

What about services that have not yet been invoiced? Some larger orders allow interim invoices, but these must be precisely coordinated with the volume of services already provided. Often a cash consideration is made on the basis of contracts at 30%/30%/40%, but whether the services have already been rendered at 30% is not always reconciled.

Accounts Receivable Management

The larger the orders, the more meticulous the accounts receivable management should be. It is a matter of timely invoicing and dunning. It has already happened to some of our clients that payments have not been made, or at least have been postponed. The lack of liquidity in the company can only be compensated if the cash management works and sufficient cash reserves for liquidity fluctuations are available.

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Keyword bank balances & bank talks

It has become difficult to extend one's credit lines quickly and without a canossa or. even prevent them from being cut. Here a good verbal preparation and preparation of the figures is expedient with bank discussions. Banks have a different view of the entrepreneurial risk resp. At their risk, not to leave loans unsecured. Then suddenly hedges, deposit deposits, savings books, personal liability declarations and even real estate must be brought in.

Debt rescheduling

Especially in a crisis or in the case of business expansions/investments, cooperation with the house bank is necessary. Personally, I think it is very important to have an agreement with your own (house) bank. I am a faithful person. Nevertheless, I believe that one should not put all one's eggs in one basket as far as banking relationships are concerned.

In the past, banks only occasionally took care of the financial evaluations of my clients, today an annual report, a "report to the report" is absolutely common with banks.

In addition, risk management at banks is rarely "on the customer" afterwards, d.h. Your bank supervisor may know a lot about you, be a good judge of your entrepreneurial abilities, have confidence in you and your entrepreneurial strength and qualifications. He will stand up for you, but whether he will stand up to the risk managers and their demands is not always certain.

In addition, unfortunately, bank employees change their respective offices and are lost as the first point of contact for your house bank.

Our tip: Therefore, I recommend to contact us relatively quickly in case of a change of supervisor and to establish a new well-founded relationship. At the end of the day, there are people at work and an eye-to-eye exchange is an absolute must.

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