This week at CFO Magazine's annual CFO Rising conference former IBM and Chrysler Corp CFO Jerry York had this advice:
"My advice to all of you in this room is to be conservative until we get to the bottom of this
thing," referring to the credit crisis, adding that, "I think it is going to be extremely difficult to borrow without collateral."
Indeed, York warned credit collection departments to stay on top of credit terms and receivables, "because in a contracting economy, receivables become a concern." He cautioned: "Watch your receivables like a hawk."
Last week, at the B2B Payments workshop I co-taught with Glenbrook we emphasized the increased attention that A/R departments can expect as uncertainty about the economy puts pressure on working capital. Corporate finance teams need to tighten their processes and ensure that they have adequate reporting tools to manage their receivables.
(Red-tailed hawk image courtesy of National Geographic)