Cash flow in crisis: 9 strategies for accountants
Cash flow should be your priority in times of coronavirus. See 9 strategies to overcome the crisis in the accounting office. Organizing cash flow is essential for crisis management at this critical moment of economic standstill. Your priority is probably to help clients who are looking for support with financial control, but you also need to pay attention to the finances of the accounting office itself. After all, the coronavirus crisis is generating brutal impacts on the economy, and most companies do not have enough cash to support themselves with the sudden drop in revenues – and expenses are accumulating . And now? Will I need to downsize the team? Waive fees ? Take loans? We’ll cover the possible answers to these questions in a quick guide to cash flow and crisis management in accounting offices. Read carefully and see which strategies are useful for your business.
Attention to cash flow in accounting office
Crisis management Cash flow is a top priority for accountants right now, including in your own office. In conclusion, Just as your customers need support to plan finances and prepare for the impact of the coronavirus, your business requires extra attention to China Phone Number Data keep resources minimal and sustain itself in the coming months. The rule for all entrepreneurs will be to reduce expenses and design the operation of the business with a significant drop in sales — in this case, possibly in fees. Although accounting plays a central role at this critical moment, it is a fact that companies’ difficulties will directly reflect on office billing, and you need to apply your knowledge to predict this effect and adapt to the situation. The more you anticipate the consequences of the crisis, the better will be your response to the possible scenarios that we will face from now on.
Cash flow scenario for your crisis management
Learn how to deal with cash flow in your crisis management during the pandemic, it is important to look for projections and understand where we are heading. In conclusion, According to the Boletim Focus released on the Brazilian GDP (Gross Domestic Product) should present a retraction of 0.48% in 2020. Worldwide, the recession will be between -2% and -2.7 % , according to Bank of America data published in G1. Regarding the financial impact, a survey by XP Investimentos published in March 2020 in Money Times shows that 40% of Brazilian companies have cash to B2C Lead withstand a maximum of 30 days of isolation and stoppage. The survey also shows that 19% would support the suspension of activities for up to 15 days , while 21% are in the range between 16 and 30 days. The remaining 21% can hold cash for between 31 and 60 days.
