3 Questions Featured

7:00pm EDT November 25, 2010

Harry Cendrowski is a founding member and managing director of Cendrowski Corporate Advisors and a founding member of Cendrowski Selecky PC and The Prosperitas Group. During his 30-year career, he has worked with businesses, private equity and venture capital funds, attorneys, and nonprofit organizations to address their needs and has helped businesses mitigate risks, streamline their operations and deter fraud.

Q. What can businesses do with their accountants to plan for 2011 and beyond?

What we are doing with our business clients is helping them focus in on their business line, what we call their contingency line and, most important, their working capital. We monitor their working capital so they can determine where the business is really headed. You normally try to have at least six months of working capital, and if you see that it’s starting to decline, you have to go back and see why. That’s where we’ve spent a fair amount of time with clients the last two years.

Q. What financial challenges will businesses continue to face?

Smaller businesses are having a hard times refinancing their loans and lines of credit, and it has a snowball effect that it tightens up the economy more and more, because those small businesses are your main employer in the country outside of the government. People are looking to see when things appear to be turning the corner so they can implement some expansion plans or some product lines or take a little more risk. We’re seeing more and more of that.

Q. What sort of financial landscape might businesses be looking at in 2011?

The government is projecting pretty slow growth, although, if we had a few positive momentum shifts — perhaps banks start lending to small and medium businesses, perhaps people just see a positive direction — you could see a fairly fast upward swing, where growth hits 1.5 or 2 percent. A lot of it has to do with the perceived outlook of the country — whether we’re going forward, whether businesses are going to see things in a positive light going forward. It won’t take much to turn it once it gets going, and we could have more rapid growth than what the government is projecting.