Survival In Difficult Times

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Many business operators have already taken steps to ensure that their businesses will survive these difficult times. Suggestions on implementing planning for survival in difficult times include:-

review costs - can any business cost be reduced or eliminated?
review labour productivity - talk to your team members and see if agreement can be reached on improving productivity.
review management of cashflow - including checking applications from new credit customers to ensure that you are not inheriting someone else's problem account. Are you receiving Directors' Guarantees?
ensure follow-up of customers' from the due date to ensure prompt payment, or if the customer has a query, so that you can resolve the query as soon as possible .
ensure tax invoices are prepared in accordance with the customer's requirements and sent promptly.
monitor debtors' aged analysis on a weekly basis.
ensure any payment arrangements made with a customer are confirmed in writing including details of key dates that the customer has indicated payments will be made. Follow-up with the customer to ensure that payments are made by the due dates.
prompt referral of problem debtors to a debt collection agency.
if you are an importer or exporter, should you consider locking in currency contracts?
review cost controls throughout the organisation on a monthly basis.
contact suppliers and try to negotiate improved payment terms.
prepare monthly financial accounts; review KPIs with managers and team members.
review marketing expenditure - if the expenditure is directly related to current sales, it is probably worth continuing, if not, consider curtailing some expenditure until market conditions return to normal.
monitor stock holdings - can stock be reduced?
monitor stock turns - will relocating stock within the store, or special promotions, help move stock?
monitor work in progress - are jobs being completed and invoiced as fast as possible?

We can assist you in implementing strategies for the present difficult business environment. Please contact us if you would like to have a discussion.

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Please contact our nearest office if you would like more information on this topic.

Bentleys Chartered Accountants and Business Advisors has offices in:

Australian capital cities Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra

Regional and suburban Dubbo, Gosford, Ipswich, Maroochydore, Newcastle, Tamworth

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