Financial and Cost Management Strategies Can Help Businesses Survive COVID-19
The COVID-19 economy reflects the ongoing disruption caused by the pandemic. This is an economy where there’s growth in some industries, but also a tremendous contraction and business closures caused by significant changes in consumer behavior. The hallmarks of the last few months are change and uncertainty. This shift has forced businesses to become more agile and take a new look at how their financial operations and cost management structure can support the business in the months to come.
The COVID-19 economy will make financial operations and cost management a critical focus for businesses and organizations for months to come. At the onset of the COVID-19 pandemic, shutdowns and stay-at-home orders caused consumers to reduce spending in many sectors, creating a cash flow crisis for businesses across the country. Since then, businesses and organizations have resumed operations, but the continued spread of virus has already resulted in periodic shutdowns and forced significant operational changes.
The business performance advisors at Brown Smith Wallace are skilled at helping organizations of all sizes evaluate expenses and identify costs and inefficiencies that may be overlooked during times of growth. We partner with you to provide the following services:
Budgeting, Forecasting and Cash Flow Optimization Services
The COVID-19 economy is forcing business leaders to make tough decisions about what’s necessary to maintain operations and how to reallocate resources quickly. Our team will work with your accounting and FP&A teams to drive efficient day-to-day processes and create reporting and metrics that give the rest of the business actionable insights on sales and costs. For example, we regularly employ zero-based-budgeting as a strategy to reveal justifiable costs that are critical to operate in the current environment.
Our budgeting strategies build the foundation for helping organizations forecast cash flow, revenue and costs, which are critical for surviving today’s uncertainty. We understand how to leverage data and process to enable fast, agile decision-making, and how to implement this quickly.
Finance Operations Services
An efficient financial operations function can improve key decision-making processes and ensure revenue is maximized. We can help you implement strategies to collect quickly from customers with fewer errors and write-offs, which will improve revenues.
We also have deep experience optimizing the procure-to-pay cycle. Payables are prone to inefficiency and fraud. Creating an effective payables process can help identify and stop unnecessary spending.
Supplier Relationship and Third-Party Investment Assessment
During tough times, evaluating which suppliers are partners and assessing your supply chain is more critical than ever. Our team can support category assessments, set contractual goals, and support the bid process. If your contract is already signed, our contract audit team can review your contractual obligations and identify savings that can result in a much-needed cash infusion.
Additional services we provide include:
- Variance to Budget Forecasting
- Inventory Optimization
- Supplier Rationalization
Contact Amy Julian to learn more about our financial and cost management solutions.