How Can CFOs Help During the Crisis?
Crushed world economy. High unemployment rates. Businesses shutting down. Worldwide panic.
The world has been hit by COVID-19 and has pushed most of the countries into strict lockdowns. With businesses closed down, and revenue generation coming to a halt, the economic situation of the world is getting worse with every passing day. Moreover, there is nothing that can be said about when the world will be able to resume its regular operations.
Small-scale businesses that were operating without a Chief Executive Officer are now looking for quality CFO services. The sudden urgency to hire CFOs is because these professionals can play a powerful role in stabilizing businesses and positioning it to thrive when conditions improve.
Launching a Cash War
Most of the CFOs in this chaotic situation has started working on devising ways that could quantify all the cash the company possesses at present. Some are even trying to quantify every bit of incremental capital they have. These professionals will help companies forecast cash collections on the previous projections. Moreover, they have the skills and abilities to analyze the seriousness of the situation. They will use the lines of credit at the right time without disturbing the balance of the company’s finances. CFOs can manage the stability of the finances well before things proceed to a survival phase.
Putting Employees First
Most companies that have laid off their employees are those who are operating without a CFO or a professional who does not possess the right skills. A smart finance leader will always put the interests of the employees first. Every smart business owner and finance professional will agree to the fact that employees are the greatest asset for every company. These are individuals who help an employer smoothly run the operations across their setup. CFOs have the skillset to think of alternative ways to maintain the productivity of the company. Instead of laying of the hard-working employees, these professionals can devise strategies revolving around remote working.
Building a Path to Long-term Success
The best quality of CFOs is that they prepare a company for the long-run while smartly managing the temporary crisis. These are expert crisis management professionals who can make well-informed financial decisions. CFOs oversee cash flow, liquidity, and supply chain issues and equip a company in a way that it moves towards creating its long-term value in the market.
Another way CFOs can help businesses stay afloat in this time of severe crisis is through engaging in scenario planning. These individuals are equipped with exceptionally strong analytical minds. They can provide a direction to the entire executive team that will help them perform better despite being trapped in this pandemic.
COVID-19 outbreak has created a worldwide humanitarian and economic crisis. It is a challenging situation for the entire world. However, there are better ways to manage businesses in this tough time besides shutting them down or downsizing. It is a time that requires every one of us to stay strong and help others as much as we can. CFOs are an asset for companies today, and these professionals are the ones that can help companies survive through the tough phase.