CHARTERED ACCOUNTANT TIPS FOR BUSINESS AS ECONOMIC WARNING BELLS SOUND
With the Treasurer sounding alarm bells, business owners are once again reviewing their business plans and balance sheets whilst still managing hits from the pandemic and rampant inflation.
Chartered Accountants are helping businesses navigate this challenging economic period and prepare for what is likely to be a prolonged period of tough economic headwinds.
“It’s an incredibly difficult time for business owners, and given the state of the economy described today, it’s unlikely there’s any new direct assistance on the way from government,” said Simon Grant, Group Executive Advocacy, Professional Standing and International Development at Chartered Accountants Australia and New Zealand.
“That’s why Chartered Accountants are working closely with their clients across the country to support them in getting in the best possible shape to meet what are going to be extended tough operating conditions.”
Chartered Accountants offered the following tips for business to help clients deal with difficult fiscal conditions:
Get the information you need to take a risk: One of the biggest barriers to growing a business is uncertainty – and it’s important not to be trapped in the headlights of negative sentiment. Businesses should work with well-informed decision-makers who can help them take action – and understand that they will continue to need to take risks, with the right advice, to keep moving towards their goals.
Look for efficiencies: Tough economic times demand that businesses take a good long look at how they do things to see if there are productivity savings to be achieved. Experts estimate that about 75% of possible productivity gains can be achieved by simply adopting existing best practice processes.
Reduce expenses: With so many businesses failing because of cash flow problems, there are some simple ways to cut down costs. Hold virtual meetings to save time and travel costs; use free or cost-effective digital payment services; look for alternatives to paid advertising, such as social media; go paperless; get rid of landline phones and faxes; look to make savings on insurance; improve time management and consider whether you need office space with the rise of virtual workplaces, or virtual and flexible workforce solutions while talent shortages continue.
Make the most of what you’ve got: Encourage clients to make sure their business is making the most of the resources it already has – including investing in employees and maintaining a sharp customer focus. Clients should also audit their business assets and ensure they are extracting maximum value from their investments – this is not the time to leave anything in the tank.
Grow your market: Look for opportunities to grow your market share and innovate, particularly as cash-strapped rivals hit the wall. There will be gaps in the market as times get tougher and tougher, and you must be alert and ready to move in to fill any voids which emerge.