CEO and Chairman of a Company? The Agreements with Your Clients Will Improve the Revenues that You Can Recognize in your Financial Statements.

 

One of the most important issues for any company, shareholder or investor, is the ability of the company to recognize revenues.

This is the foundation for demonstrating the company’s success to the investors and shareholders.

The money and cash flow don’t really matter.

Rather, the presentation of revenues is critical for how a company appears to those examining it from the outside, and for the company’s financial advancement.

It is likely that a conventional lawyer is less aware of issues involving the recognition of revenues in financial reports.

Finance executives and accountants are usually responsible for this issue.

And this is exactly the problem.

When I co-managed one of the substantial agreements with a big client from abroad, I was approached by the CEO of the company who explained me that it was strategically significant for the company to be able to recognize its revenues from a project in relevant times.

After consulting with the CFO and the VP of Professional Services about the structure and the content of the project, I was able to introduce a smart mechanisms into the agreement that enabled the company to recognize revenues on time and to display them in a suitable fashion.

In addition, these mechanisms protected the company from being excluded from an upcoming project, because we anticipated every possible risk in advance.

The project helped the company to improve its revenues in financial reports, improved its financial stability and its relations with the investors.