"sorry about late payment, we are busy doing creative accounting" Thread poster: Krzysztof Kajetanowicz (X)
|
|---|
Krzysztof Kajetanowicz (X) 
Poland
Local time: 10:57
English to Polish
+ ...
You got it right. A client is late with a payment because they're "sorry" and "all payments were withheld until 1 July".
It just so happens that 30 June marks the end of the second quarter, and that the client is listed in a stock exchange. Go figure.
Now, if they were broke, I could maybe even sympathise. Business doesn't always go right. You want to pay your dues but you can't. But how about deliberately withholding payments in order to report higher assets, higher ca... See more You got it right. A client is late with a payment because they're "sorry" and "all payments were withheld until 1 July".
It just so happens that 30 June marks the end of the second quarter, and that the client is listed in a stock exchange. Go figure.
Now, if they were broke, I could maybe even sympathise. Business doesn't always go right. You want to pay your dues but you can't. But how about deliberately withholding payments in order to report higher assets, higher cash and higher operating cash flows? (Nb they didn't admit that this was the intention - it's just the striking coincidence of dates.)
Yes, this is the classic whining thread. Please don't advise me to stop working with them. Believe me I will.
[Edited at 2010-06-30 11:23 GMT] ▲ Collapse
| | | | opolt
Germany
Local time: 10:57
English to German
+ ...
| Are you sure they aren't broke? | Jun 30, 2010 |
Just wondering. Or maybe there's a takeover in the making, which could also affect you.
How many days did they actually withhold payment? If it amounts to just a week or so, I would see no big problem -- depending on your past dealings with them.
But remember, these are your debtors stating they just aren't able to pay you right now...
Sympathise? Well, if it's small business explaining to me that there has been "a problem with the accounting dptmt.", that ... See more Just wondering. Or maybe there's a takeover in the making, which could also affect you.
How many days did they actually withhold payment? If it amounts to just a week or so, I would see no big problem -- depending on your past dealings with them.
But remember, these are your debtors stating they just aren't able to pay you right now...
Sympathise? Well, if it's small business explaining to me that there has been "a problem with the accounting dptmt.", that may be ok in my book if it happens once in a while. But a public company? Sounds as if they have started running already.
Watch out.
[Edited at 2010-06-30 15:39 GMT] ▲ Collapse
| | | | RobinB
United States
Local time: 03:57
German to English
| Shouldn't be an issue | Jun 30, 2010 |
Krzysztof Kajetanowicz wrote:
You got it right. A client is late with a payment because they're "sorry" and "all payments were withheld until 1 July".
It just so happens that 30 June marks the end of the second quarter, and that the client is listed in a stock exchange. Go figure.
If they're a listed company, then they certainly use accrual accounting, so your invoice will be recorded as an expense when it's received, not when they pay it.
Sounds more like a cash flow issue. Which is an entirely different matter.
| | | | Krzysztof Kajetanowicz (X)
Poland
Local time: 10:57
English to Polish
+ ...
TOPIC STARTER | different but not different | Jun 30, 2010 |
RobinB wrote:
If they're a listed company, then they certainly use accrual accounting, so your invoice will be recorded as an expense when it's received, not when they pay it.
Sounds more like a cash flow issue. Which is an entirely different matter.
Sure, like I said in the first place, they're probably trying to make their cash flow statement and balance sheet prettier. As you know, those are important parts of the financial statement, not just the P&L.
Any analyst worth his salt will recognize that they've simply been delaying payments, not running a more efficient business, and I don't think what they're doing doing makes a lot of sense. But the intention seems clear.
Or they're broke (unlikely).
| | |
|
|
|
Adam Łobatiuk
Poland
Local time: 10:57
Member (2009)
English to Polish
+ ...
| It's happened every quarter | Jun 30, 2010 |
For at least a year or so. Which really makes me wonder what the point is - but the delays always come quarterly.
I'm pretty sure we're talking about the same company, and it's one of the most annoying examples of their antics, IMHO. Could it be limited to Poland only?
| | | | RobinB
United States
Local time: 03:57
German to English
| Can't help the balance sheet | Jul 1, 2010 |
Krzysztof Kajetanowicz wrote: Sure, like I said in the first place, they're probably trying to make their cash flow statement and balance sheet prettier. As you know, those are important parts of the financial statement, not just the P&L.
But it won't affect the balance sheet, because the liability to you will already appear there under trade payables. And it will also appear in the cash flow statement as working capital (current assets minus current liabilities).
So my guess is that they have a bottom-line *cash* issue in the sense of available cash-in-hand/cash-in-bank. Not pretty.
This "banking with your suppliers" policy is a typical tactic of companies that have been burning a lot of cash. If your client is a translation provider, I'm not exactly surprised: of all the translation/localisation companies that went public in the last 15 years or so, only one (SDL) has made the grade to a strong and evidently sustainable financial position. The others either went under or give the impression of living from hand to mouth. Overall, I just don't see translation and localisation as a suitable sector for publicly traded companies. The figures don't add up.
| | | | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » "sorry about late payment, we are busy doing creative accounting" | CafeTran Espresso | You've never met a CAT tool this clever!
Translate faster & easier, using a sophisticated CAT tool built by a translator / developer.
Accept jobs from clients who use Trados, MemoQ, Wordfast & major CAT tools.
Download and start using CafeTran Espresso -- for free
Buy now! » |
| | Trados Business Manager Lite | Create customer quotes and invoices from within Trados Studio
Trados Business Manager Lite helps to simplify and speed up some of the daily tasks, such as invoicing and reporting, associated with running your freelance translation business.
More info » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |
Login to reply/comment 
Translation news
