Arcvue
Treasury—two statements that disagree on purpose
A profitable quarter and a falling bank balance are not a contradiction.
Revenue is recognized when earned, not when collected. Cost is recognized when incurred, not when paid. The gap between an economic event and a cash event is invisible on the income statement and entirely real in the bank account. Arcvue runs the statements and the thirteen-week cash view off one closed ledger, so the gap is a line you can point at.
Every firm answers one question every week, and the P&L does not answer it.
Can we cover what is going out? A thirteen-week forecast organizes inflows and outflows—payroll, subcontractor payments, vendor invoices, contract receipts—and projects them week by week from history rather than from what somebody typed in. A cash crunch becomes visible three weeks out instead of on the day the balance is short.
This divergence is the entire reason a cash flow statement exists alongside a P&L and a balance sheet. If profit and cash were the same thing, one statement would do.
In GovCon the gap is structural, not occasional.
- Invoice to payment. Work is earned in a month and paid weeks or months later. Payroll is not similarly patient.
- Subcontractors. You often pay them before the government pays you, so growth consumes cash exactly when the P&L looks best.
- Unbilled work. Revenue earned and not yet invoiced is profit on the statement and nothing in the account.
- Retentions and withholds. Amounts earned and deliberately not paid yet.
The thirteen-week view, built from actual receivables and payables.
Treasury projects the position forward from what is actually owed and owing rather than from a manual forecast, which is what lets a crunch be seen while there is still time to act on it.