"We're only poor until October 1st"

Of all the things I can say about our business and yes there are many, the one thing I can assure you of is that there is never a dull moment . . For instance this past week has been spent working with one of our biggest clients (you'll never guess who!) on when they can pay their bills for services already provided.

Now I understand that the economy is still in recovery mode, though I do remember hearing last week someone saying the recession was over . . who was that? Oh that's right it was our biggest client. I should be more specific. Our client is an agency of the tax & spend crowd . . I don't want to names but their money comes from that magical place called the Fed . .

I'm getting off track again so let me refocus here . .

We provide health care workers for "our clients" project. Don't get me wrong this is a very worthwhile project and one we are happy to be part of, however, we are a small business and actually require payment to fund things like our employee's payroll, for example. Keep in mind we invoice for services rendered so we are out of pocket until we get paid, like most small businesses.

So after haggling back and forth, getting the run around, today I finally get the whole story. The problem is that "our client" runs their fiscal year from Oct-Oct, while most everyone else in, oh say the private sector is on a Jan-Jan schedule. The truth of the matter is that "our client" paid invoices for service year 2008 in 2009, because they paid late and didn't pay until after October 1st last year . . . So they have applied those payments against their budget for this fiscal year and now they have no more money . .

Apparently our method of accounting is just crazy . . because typically when we go to pay our bills we pay them with the money allotted for that service or expense, we don't take from next year's money just because we paid in a different accounting period. We are at an impasse because I can't grasp the complicated accounting system under which "our client" participates . .

So now we are stuck as a small, family owned business with deciding to fight this, as it a 5 digit loss we would be taking, . . We certainly don't have their resources, it could cost us future business (hard to believe I know) and for all intensive purposes they are broke until October.

My question is, "What happens on October 1st?" Amazingly the money trees in your privately owned bank will produce money you don't have to begin with? Perhaps we should all adopt this accounting method around, I don't know . . April 15th . .

-Nichole, in constant pursuit of life, liberty & happiness . . .