Tips for CFOs during tough times
While facing tough times, as an individual, we always rely on someone for support and advise. For a business, it is you, their CFO, whom they lean on. In times like these you become the Captain of the ship and make important decisions.
But, turbulent times can impact you, as a CFO, making you pause and hesitate in your decision-making!
Read this post to find how you can be better equipped to handle tough situations, if and when they arise.
Role-play is essential
Have a detailed financial plan of different scenarios that impact the business such as revenue, costs, cash and inventory.
Know the cash in your pocket
Stay up-to-date with the financial records of the company, especially cash flow and forecasts.
Trust your bank
Talk to the bank or investors about any problems that the business is facing. If detected early on, they can assist in recovering the business.
Keep an eye out for prices and people
Monitoring prices and competitors is essential. Do not adopt unsustainble pricing strategies in the long run.
Choose your customers wisely
Compare the costs of acquiring new customers versus retaining small customers who are sure to gain profits in the long run.
Find scope for improvement
Try to negotiate better terms with suppliers and offer them benefits such as extended payment period and so on.
Keep an eye out on potential mergers or acquisitions and try to inject funds through strong investors.
Take care of your team
Employees are often the first in line to be impacted in tough situations. Go beyond numbers and stand by your team who work tirelessly for the business’s growth, every single day.
An alternative to layoffs
You can employ automation to take care of repetitive works, cut down operational costs and elevate your team to perform tasks that add value to the business.
Want an automation solution to hold your hand during the ups and downs of a business? Contact email@example.com and get a customised accounting solution!