The bank balance has never been higher. Most of it is work not yet done.

When customers pay in advance, the current account stops measuring performance and starts measuring obligation. The distinction matters most at the point it stops flattering you.

By Steve 5 min read
Abstract bridge artwork for The bank balance has never been higher. Most of it is work not yet done.

A business that collects before it delivers has a peculiar relationship with its own bank balance. Annual licences billed in January, retainers invoiced quarterly in advance, deposits taken at order, maintenance contracts paid up front: each one puts money in the account for work that has not yet been done. The balance grows. The owner feels solvent. And the number in the account, which is the single figure most owners check most often, has quietly stopped being a measure of how the business is performing and become a measure of…

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