Economic downturn? Not if you're smart

June 26, 2020

By Gene Marks, Accounting Today

Economic downturns are difficult, challenging times for many. But with a downturn comes disruption. And with disruption comes opportunity. If you're a CPA or a finance professional, you've got the chance to help your clients and the people you work for to take advantage of these opportunities. What kinds of opportunities?

For starters, there's simple cash flow. The next few months will be very difficult, as many businesses try to emerge from their local shutdowns and face lower demand, continuing restrictions and a potential looming "second wave" (see below). As with any economic downturn, cash is always king and you — the finance person — are supposed to be the cash expert. Now is the time to help your clients create cash flow forecasts, analyze expenses and better control costs. Now is also the time to help implement internal controls that help to provide better security of a company’s reserves. And I daresay that while you have your clients’ attention, now is the time to implement a formal budgeting process. It’s all in the cause of better cash management, not just for today but for the long term. The time is right.

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