Ensure you're in compliance
In addition to the financial aspects of both the income statement and balance sheet covenant requirements, you also have the GAAP (generally accepted accounting principles) requirements and quarterly reporting schedule.
With all of the recent changes in GAAP, there is a risk of reporting on a non-GAAP basis if you report on a quarterly schedule. Consequently, it's important to ensure compliance for each quarter you report, or you may find yourself out of compliance because you only book the GAAP changes at year end.
Banks now have more compliance issues to contend with, which means you do, as well. Help them and yourself out by getting your house in order and meeting your timing and covenant requirements. First order of business is to review the bank loan docs and covenant requirements. If you are out of compliance, ask for the waiver and negotiate to a conclusion before you have an issue with your auditor.
By the way, elections are coming up in 2010. Do your homework and vote for people who will listen to you.
Garry Bartecki is the managing member of GB Financial Services LLP and VP Finance for the Associated Equipment Distributors. He can be reached at (708) 347-9109 or email@example.com.