Budgeting, financial reporting and liquidity management are often not the highest priority for many companies in times of growth and economic success. But especially in uncertain times such as the Corona crisis, it is clear that it is important to create stable structures and processes in the financial area in order to steer the company in a targeted manner even through stormy times and to prepare it for various scenarios.
We are therefore happy to help you set up a reliable planning and reporting system or to question and possibly expand your existing planning in light of the new situation. We can also advise you on stabilizing your financial processes. Please feel free to contact us and benefit from our experience.
Below are some questions to provide food for thought for assessing the status and performance of financial reporting and planning capabilities:
- How up-to-date are your capital and financial data?
- Are you able to obtain high-quality financial data and business metrics at short notice and evaluate them appropriately?
- How do you assess the adequacy of your internal controls in the company to prevent incorrect data and financial losses?
- Are your business forecasts up to date?
- How quickly can you adapt your planning due to changing conditions?
- Have you designed appropriate scenarios for the effects of the Corona crisis? Example scenarios could be:
- Business continues as before, and additional opportunities may even arise due to weakened competitors
- You suffer significant revenue losses, forcing you to make significant financial and operational restructuring.
- Business collapses massively and you are forced to make drastic restructuring measures.
- What consequences would the individual scenarios have, for example, for wage levels (freezing or cuts), personnel planning, investments, non-operational expenditure (e.g. marketing) and infrastructure requirements?
- What cost restructuring measures could you take – quick wins vs. long-term cost transformation (e.g. through digitalization projects, outsourcing or insourcing of functional areas, etc.)?
- What does your cash runway look like under each of the three scenarios above?
- What liquidity management measures can you take (shortening the cash conversion cycle, optimizing accounts receivable management, taking advantage of supplier credit, etc.)?
- What access do you have to investor and/or emergency financing? Do you use public funding programs?
- Do you actively work with a risk and opportunity management system to steer your company in a targeted manner, not just through times of uncertainty?
If you have any questions, please feel free to contact us:
Dr. Matthias Ritzi
E-Mail: matthias.ritzi@moore-tk.de
Tel.: +49 (0)621 42508 -40
or
Christian Pätzold
E-Mail: christian.paetzold@moore-tk.de
Tel.: +49 (0)30 588494 -10
