Post-covid financial strategy-Here is how an expert CFO can help you!
Following the devastating impact of covid-19 upon small businesses, strong and steady business process modeling is the need of the hour. In order to ensure sound financial management, small businesses need to address immediate concerns to ensure survival, stability and recovery.
Our CFOs can play a pivotal role during the prevailing uncertainty by taking decisions that will ensure business stability and position it to grow once conditions become favourable. Having helped companies battle internal and external crises in the past, our experienced financial controller will take actions which are partly based on empirical market research to ensure your business is on a path towards strong financial footing.
In this article we will outline how our Chief Financial Officer can help small business owners during the ongoing crisis. We will try to outline actions that ensure immediate, medium and long term financial goals that will ensure business recovery in the long run.
Tackling the immediate crisis
Liquidity crunch is causing financial stress for small businesses, due to which many small businesses have closed temporarily. Supply chain business analysts unfortunately weren’t able to foresee the ongoing disruption which has resulted in heavy damages for businesses worldwide. Therefore, a financial controller or a finance manager’s top priority currently should be to optimize cash reserves. Our contract CFO services will devise an internal and external communication plan which will focus on developing distinct scenarios keeping in mind how the virus spreads.
While our CFOs are aware of the importance of quantifying companies’ cash in hand, they also understand the importance of forecasting cash collections as per the future sales projections in order to strengthen the internal cash-flow.
Ensuring mid-term stability
Our Chief financial officer will help small businesses stabilize after the immediate issues related to cash-flow are addressed. As your accounting partner, our mid-term tasks will include ensuring increased productivity and re-evaluation of the investment portfolio.
Our data shows that companies that constantly pursue improvements in productivity outperform their competitors; thus, creating space for expansion during the recovery period. These organizations were able to reduce their operating costs 3x when compared to their peers.
As demand is falling during the lockdown, reducing operational costs is extremely important for finance managers but it is also vital for them to strike balance as there will be an eventual need to scale back operations once the lockdown subsides and the demand stabilizes. Our CFO in the meantime can help small businesses apply zero-based budgeting to all expenditures that are discretionary in nature.
Revaluation and Strengthening the balance sheet
The current economic turmoil that is plaguing businesses can be used by CFOs to perform an in depth balance sheet diagnosis. Our CFOs can help your business in reducing inventory items and in refinancing debt. Such measures will help in increasing your organization’s long term financial stability. As every organization’s expected ROI has had definite significant changes due to the current economic situation, organizations need to move their resources towards projects that are most vital for the company’s post pandemic future.
Businesses also need to supercharge their forecasting and budgeting so that the financial officers in the organization have access to updated business information which helps them devise an integrated forecast. To achieve this, the financial planning team needs to manage and monitor major KPIs. Our CFOs can then use these forecasts to make real-time operational business decisions for the future.
Reformation for the long-run
As businesses will be eager to move forward after the crisis subsides, your business with the help of our CFOs can initiate bold strategic moves including devising plans for attracting investments and making important portfolio shifts. Our data outlines some of the important initiatives that can help businesses perform exceptionally well in the market.
Digitization
Covid-19 is the only senrario that has caused the workforce to work remotely, further strengthening the need to digitize businesses. Embracing digitization will ensure accurate reporting and decision making while also ensuring business continuity in case a similar crisis surfaces in future.
Embracing the transformation mindset
The best opportunities to restructure a business are often hidden inside crises and covid-19 is no different. Our CFOs have exactly what it takes to help your business set targets keeping business transformation at the fore-front. The finance managers can achieve this by launching a review of the business portfolio and ensuring that each business unit starts performing at its full potential. Such measures can not only boost business revenues in the future but also reduce costs.
