Doing it because you can

I got an interesting phone call over the weekend. It was about my Kohl’s credit card. My next billing date is changing from the 9th of December to 25th of November. Huh? The guy explained that Kohl’s is “going to a 25-day cycle” for billing. How convenient for them. So instead of one more billing cycle with them this year, I get two.

It reminds me of what happened when one of the stations I worked for went from current paydays — where you’re paid on Friday for the work you did that week — to paying in arrears. What it meant was that everybody gave up one week’s pay that year, which really helped boost the bottom line of the company.

Companies do these kinds of things, because they can. But just because you can doesn’t mean you should.


  1. you get to make 14 payments per year vs. 12 the old way.

    nice xmas gift, eh?

  2. Just an accounting lesson for you. Moving your payroll to one week in arrears changed nothing on the company’s bottom line (assuming they’re on the accrual method). They recorded the same expense. It did help their cash flow (the actual cash going out of the company).

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