Best Management Practices in an Economic Downturn
07/01/2022
In a recent article posted by the accounting firm of Harper, Rains, Knight & Company (HRKC), they shared some best practices for managing your business in an economic downturn. Though this article focuses mostly on retail businesses, their focus on managing cash flow is certainly a key management principle for any business to investigate, monitor and enhance their management.
You can read the full article here: https://blog.hrkcpa.com/blog/best-practices-for-managing-your-business-through-an-economic-downturn/45638
In addition to the suggestions they offer, when monitoring their cash flow entrepreneurs will look first at their receivables. They initially focus on their high-dollar receivables and make an extra effort to collect those amounts or get the customer on an accelerated payment plan. In some cases, collecting just a few of those larger amounts can meet the cash flow shortfall for one or two months. It’s also motivation to make sure all those amounts are current and they have made contact with all those in arrears.
What are some of the strategies you use with your clients who are anticipating an economic downturn? Which actions do you recommend they take?
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This article is the personal opinion and perspective of the author and may or may not be consistent with those of other ASAC Members. ASAC as an organization does not advocate positions on issues.
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Link supplied by:
Pete Weisenberger
ASAC Board Member
pete.weis0956@gmail.com
Posted by:
Don Tyler
ASAC Member
Tyler & Associates
In a recent article posted by the accounting firm of Harper, Rains, Knight & Company (HRKC), they shared some best practices for managing your business in an economic downturn. Though this article focuses mostly on retail businesses, their focus on managing cash flow is certainly a key management principle for any business to investigate, monitor and enhance their management.
You can read the full article here: https://blog.hrkcpa.com/blog/best-practices-for-managing-your-business-through-an-economic-downturn/45638
In addition to the suggestions they offer, when monitoring their cash flow entrepreneurs will look first at their receivables. They initially focus on their high-dollar receivables and make an extra effort to collect those amounts or get the customer on an accelerated payment plan. In some cases, collecting just a few of those larger amounts can meet the cash flow shortfall for one or two months. It’s also motivation to make sure all those amounts are current and they have made contact with all those in arrears.
What are some of the strategies you use with your clients who are anticipating an economic downturn? Which actions do you recommend they take?
= = = =
This article is the personal opinion and perspective of the author and may or may not be consistent with those of other ASAC Members. ASAC as an organization does not advocate positions on issues.
= = = = = =
Link supplied by:
Pete Weisenberger
ASAC Board Member
pete.weis0956@gmail.com
Posted by:
Don Tyler
ASAC Member
Tyler & Associates
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