Page 21 - Chamber Voice Magazine Summer 2023 FINAL

B D O S P O N S O R E D F E A T U R E

A CHANGING LANDSCA PE

FINANCIAL PERFORMANCE & RISK MANAG EMENT Virtual CFO services are a great example of a resource
continued....... outsourcing solution that can take stress out of business
financial management – offering ready access to
Think about the “what-if’s”. The business landscape specialist expertise in cases where businesses don’t have
can change rapidly, and it’s important that your the funds or means to effectively recruit this resource in a
.
business is able to adapt to meet the market. When tight labour market.
forecasting, ensure you understand your potential
financial position under a number of scenarios, and Manage your stock. Supply chain issues are considered to
plan what you would do to mitigate risk or be a driver of negative wellbeing for business leaders,
maximise opportunities in each. and while there’s no easy solution, you can start by
forecasting future sales to help determine what you need
Look at your financials holistically. You should be as to buy now.
familiar with your overall financial picture as you are
with your products and services, market, and Keep a close eye on debtors to collect cash within
industry. Review every metric, from net profit and reasonable timeframes. Debtors can let payments drag
gross margin to expenses, cash flow, and sales. Look out in a bid to manage their own cost pressures. Look at
at how these combine to build an accurate picture your terms of trade and, if feasible, consider providing
of how your business is performing. incentives for prompt payments.

Review your pricing and margins to manage Start simply. We know the climate agenda is a significant
inflation. Increased business costs can squeeze your focus for many businesses, but it can be difficult to know
margins, so take the time to regularly review and where to begin. A simple baseline analysis and
update your pricing as necessary with a view to your materiality assessment can help to establish where you
competitive landscape. This is especially important are now and where you want to be in the future.
at the start of any significant project. Consider
adding clauses to your contracts to help you adjust Put business continuity plans in place. The past few years
prices according to inflation. have taught us that the unexpected can happen. Solid
business continuity plans help your business to carry on
Balance your workload. Workload is a constant even if a major event occurs.
juggle for business leaders and their teams. It’s
important for business leaders to consider if some of Seek help. This could be from your board, industry peers,
their current projects, roles, and tasks could be or professional advisers, including accountants and
outsourced rather than assigning them to lawyers. There are people out there who have not only
employees. seen these challenges before but can provide practical
guidance specific to your business situation.

20 VOICE MAGAZINE