Cash flow will be the defining economic issue in 2020 for businesses.
Cash flow will be the defining economic issue in 2020 for businesses.
Companies large and small are scrambling to prepare for a cash crunch that is the result of weeks of economic restraints put in place in an attempt to limit the impact of the COVID-19 virus. During these challenging times, understanding your cash flow and the key indicators that affect your cash will be critical for your business to survive.
The foundational information you need to successfully manage cash during a crisis can be summed up in seven critical levers that you and your team must know and track to be able to manage as proactively as possible.
· Revenue increase or decrease %
· Gross Margin increase or decrease %
· Net Profit increase or decrease %
· Accounts Receivable increase or decrease in days
· Inventory increase or decrease in days
· Accounts Payable increase or decrease in days
By creating multiple “what if” scenarios that focus your attention on these seven levers, you will be able to manage your cash flow and put yourself in the best position to survive the turbulent times of today.
To help businesses during the Covid-19 crisis, Accerion Partners is offering at no charge a “Cash Flow Stress Test.” This simulation allows your team to model and analyze Best-Case and Worst-Case Scenarios that will help you create a definitive plan of action.
To learn more about our “Cash Flow Stress Test,” and other ways we can help you persevere cash, contact us at: info@accerionpartners.com or at 616.377.4567. Look for us on the web at www.accerionpartners.com
