Be a business leader
While COVID-19 is threatening the lives of many people around the world, we are feeling the aftermath in the business world in central and western North Dakota. With thoughtful precautions being taken to prevent the spread of the disease, business owners are worrying how long they can survive the changes in their customers’ lifestyles that affect their bottom line.
If you are in this position, be confident in your skills as a business leader and your capacity to make good decisions. These are times when an outside perspective can be helpful, so feel free to access our wide variety of C-Suite services at Schmitz-Holmstrom. If you have employees in key roles who need to be out because they are infected or need to care for children, we can provide short- and long-term backup for you. We’ll stand beside you during these times so we can keep our business community strong.
Monitor your balance sheet during times of business stress
It is critical that you monitor these five items during times of stress on your business.
- Cash – You should have a good understanding of the cash needs of your business.
- Working capital – This is current assets less current liabilities. In times of stress, liabilities increase and working capital decreases.
- Inventory – What is the base level you require to function? Be proactive in securing inventory that is hard to purchase.
- Aging Accounts Receivable – What accommodations can you make with your customers to continue their payments coming in?
- Accounts Payable – In reverse of that, what accommodations can you make with your vendors to continue making at least partial payments if necessary.
Successfully navigating these items can require a bit of accounting gymnastics so make sure you include your accountant if you require assistance.