Accounting Manager only · Accounting · Your Spread

Cash + receivables − payables = the Spread

Measure it at least monthly, twice in change or crisis. Cash is life. Receivables predict cash. Payables predict cash leaving. A shrinking Spread is a warning. Find out why, including one-time hits like a workers-comp audit or a truck buy.

The income statement can lie about survival. The Spread is harder to fool.

Accounting

Tactics by seat

Accounting Manager

  • Put the Spread on the owner's desk without being asked. Include backlog in crew-weeks beside it.
  • When Spread drops an unusual amount, bring the why in the same conversation, not next month.
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