COVID-19 has come up as a global pandemic and still, the world is unaware of when it will be last. The entire nation is knocked down; the social being of the population has been greatly impacted. There’s uncertainty around the question of how long this condition will persist. This uncertainty increases the complexity of formulating a concise response. Hence it’s an urgent need to monitor your company’s financial health during COVID-19.
It is therefore crucial that businesses are alert and proactive in assessing their vulnerability and risks from both financial and functional standpoints. Remaining in the environment demands businesses to act decisively to mitigate dangers and strategy for abrupt and sluggish recovery conditions.
COVID-19 has directly affected the business continuity as the operations of the business have been reduced, supply chains have dried up and, the demands have plunged. These dangers may rapidly result in increased pressure on covenants, liquidity risks, increasing third party risk, and are financing the requirements.
Few offerings that can be used to address these types of situations are-
- Turnaround planning
- Working capital
- Interim management / CRO
- Right size cost structure
- Third-party credit risk and
- Management of liquidity
How can it be done?
- Cash management and a rapid diagnostic
- Control the cash flow and accept a short-term action plan.
- Reforecast secure financing, liquidity, and government aid.
- Manage the crucial stakeholders like suppliers, customers, banks, and the regulator.
- Perform a clear analysis of data
- Identity, comprehend and address the elementary drivers.
- Data-based assessment of opportunities and indexing based on complexity and volume.
- Develop regular conversations plans with key stakeholders.
- Plan and prioritize
- Make a detailed and quantifiable restructuring strategy, supported by key stakeholders
- New capital arrangements should be implemented.
- Benefit cash achievements
- Back the implementation of the plan of restructuring
- Refine the financial and operational plan to be implemented as required.
Moreover, outsourcing the services will lower your overall functional costs and increase the efficiency of your business. For example, bookkeeping is outsourced to bring the immediate capacity building and flexible scalability. Your day-to-day updates about the business and financial transactions are recorded in bookkeeping services. It ensures that all the records of financial transactions are correct, comprehensive, and up to date. Dividing to outsource a bookkeeper may be your best decision. As it’s a part of their job to issue all the invoices promptly and ensure you for the timely payment of your bills.
Put all your focus on managing your money and look your business thriving and your business will be scaled and run effectively with these outsourcing services.
Hey Sara restructuring support
We assist companies to respond even in crises. We offer a turnaround program that commonly runs in phases. The tactical actions are kept at the initial step which goes on to the longer-term perspective of planning.
At Hey Sara, you will get a hand on backing from Executive management and shareholders to provide you with successful turnarounds. We work to enhance liquidity, increase profitability, manage third-party risks and enhance the right-size cost structure.