7 recommendations for better financial management in times of crisis:

Posted by Ujjawal jain on May 28th, 2021

Although some economics professionals have carried out analyzes regarding the current moment and its possible consequences for companies, it is not easy to have clear information in this regard.

Fear, uncertainty, and bewilderment are some of the ingredients of the breeding ground that surrounds us. The business world is forced to take these feelings into account and live with them. But, in addition, each company and each franchise are different and live their situation of insecurity in a specific way.

Here we have provided 7 recommendations to carry out better 理財新手 in the present situation:

1. Do everything you can to keep your cool:

Now, more than ever, it is essential to carry out an objective analysis of the situation, without allowing yourself to be contaminated by negativity and fear, to make the best decisions and react most appropriately.

2. It is necessary to analyze the financial statements of the companies:

The financial statements of the company (balance sheets, income statements, and treasury) must provide reliable information to help decision-making.

3. Treasury budget:

It is very important to have the treasury budget very controlled since it is necessary to know the money that is needed in a month, three months, six months, and even in a year. It will need to be reviewed and updated weekly as the budget is what will tell how much money is needed to keep the business viable.

4. Study of all expenditure items:

The expenditure forecast will be divided into 3 groups that may also apply to the family economy:

- Expenses that can be avoided. 

- Expenses that can be reduced.

- Expenses that can be deferred.

5. Good time to start negotiation processes:

The current circumstances are favorable to negotiate those expenses that can be reduced and postponed since it lends itself to empathy. In this way, when the activity is resumed, we will have a financial base that will provide us with minimum security.

6. Focus on income items:

It may be a good time to design the relaunch of the company's products. Naturally, this work will need to be done in conjunction with the finance, sales, and marketing departments. Consulting can be of great help at this point since a mentor can provide an enriching vision about the opportunities for the expansion of your business after the crisis.

7. Find out what aid or financing can be requested:

Companies should take advantage of the activation of the financing lines proposed by the governments and request those necessary to start their projects with the greatest possible stability.