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Nine Things to Consider in This Financial Crisis
CFO Consulting Partners, a financial management consulting firm, is closely monitoring the business impact of the Coronavirus (COVID-19) pandemic to help you make business and cash saving decisions in these very uncertain times. Below are eight points for consideration:
1) If you need to lay off employees, it is important to first investigate the latest federal and state employee-related requirements, including those related to unemployment and paid time off.
2) Conserve cash by deferring tax and mortgage payments under initiatives that have been or may be enacted at the federal and state levels.
3) Review expenses for non-critical functions that can be reduced.
4) Contact your insurance broker in regard to Business Interruption Insurance.
5) Start or increase the frequency of your cash forecasting process.
6) Manage working capital more aggressively to free up cash.
a. Inventories: Reduce raw material and finished goods inventories to reflect the downturn in top line activity during the crisis.
b. Receivables: Accelerate collections activities; reassess credit lines as customers come under cash constraints; consider increased cash discounts and shorter payment terms to accelerate cash.
c. Accounts payable: Reach out and partner with key vendors, they may be willing to work with you; work with your local utility providers for support (i.e., rates, terms, …).
7) Use this interruption in business activity to strategically plan for the future when the spread of the virus has been curtailed and the economy recovers. How are the markets in which you purchase and sell likely to be different from the way they were before the crisis?
8) Improve use of technology to allow employees to work remotely.
9) Consider using temporary staffing firms to substitute for employees who become ill.
CFO Consulting Partners has experience in all of the above areas. If you would like to know more about our capabilities, email or call Allan Tepper at firstname.lastname@example.org, (646) 650-2028 x701, or David DeMuth at email@example.com, (609) 309-9307 x700.