Treasurers and financial executives at more than one-third of companies –- 39 percent -– measure their firms’ liquidity weekly or even daily, according to a recent survey by Deloitte. At the other end of the spectrum, nearly 32 percent of respondents either didn’t know how often their firms measured liquidity or said that the question didn’t apply. About one in five measures monthly.

Of course, no single formula can determine when every company should count its money. However, with the economy tight and sales hard to come by for most firms, this is one area where improvements can help the bottom line. “Working capital is a key element of value in a lot of companies,” says John W. Little, principal with Deloitte’s reorganization services group. Now is an opportune time to review internal processes with an eye toward making them more efficient, he adds.

One starting point lies in the accounts receivable area. If payments are starting to drag, it’s time to get on the phone with customers to find out what’s happening. At the same time, it makes sense to keep tabs on news about your customers and their industries, to avoid being blindsided by sudden shifts in their financial status.

And, while the sales group may balk, chronic late-payers may require tighter credit limits. “Most companies have the tools in place to do this; it’s a question of having the will,” Little notes. No one wants to tick off valued customers -– especially those that are actually placing orders. By having a good handle on customers’ payment patterns and a solid understanding of their industry, credit and sales should, without too much acrimony, be able to reach agreement on the course of action that makes the most sense for the customer and the company. ###