COVID-19 Crisis: How CFOs Can Help?
How Finance Executives Can Play Their Part to Keep Companies Going Strong?
The COVID-19 crisis evolves daily, and Chief Financial Officers (CFOs) ad other finance execs need to ensure the right measures are taken for all parties involved.
Now more than ever is when a business needs strong leadership at the helm to survive this crisis. Finance executives find themselves in a position where they must address concerns regarding the survival and safety of their business. More importantly, they need to ensure that the business is going to be able to bounce back from this challenge.
As governments around the world spring into action with measures to help stave the impact of the crisis, businesses are doing the same. The primary concern of businesses is the protection of employees, clients, and the bottom line. With many businesses already losing revenue, it is now critical to take the right steps to ensure survival.
What CFOs Can Do to Survive in the COVID-19 Crisis?
A CFO is one who is directly responsible for the financial health of an organisation. To ensure the business is strong enough to survive the COVID-19 crisis, these are the measures that must be taken:
- Risk Management – A careful assessment and management of risks must be undertaken to preserve cash where possible. Liquidity can be bolstered if the short-term cash and credit needs are appropriately handled.
- Enforce Communication Plans – Communications needs to be clear across the entire organisation. A CFO must ensure that everyone in the company is up to speed about what the priorities are. This includes communication to both upper management (board of directors and investors) and employees too. Communication should be ongoing and consistent so no employee, client, director, or investor has cause for concern.
- Cash Preservation Measures – These measures are crucial now more than ever. It is the only way to ensure the business will survive until things stabilise once more. There’s no telling how long it will be and a business must be prepared for the foreseeable future.
- Diagnosing the Balance Sheet – This is a good opportunity for CFOs to re-evaluate their balance sheets and investments. Perhaps a new budget may be in order too.
How 3E Accounting Can Help?
At 3E Accounting, our years of experience puts us in a unique position to help CFOs and businesses stay one step ahead. We have helped our clients weather unpredictable storms before and we can do it again here. Should you need business advisory assistance, visit our website for a list of services we offer or contact our team today.