What’s Shakin’ in SALT News – July 2021
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Due to the COVID-19 pandemic, many businesses are experiencing high levels of disruption to their operations. Governmental orders, supply-chain issues and rising commodity prices, among many other factors, are presenting unprecedented challenges for businesses of all sizes across the country.
While many businesses looked to the Paycheck Protection Program (PPP) to help stabilize their operations and temporarily improve their liquidity during the heart of the pandemic – these funds have been spent. Businesses must now find other ways to continue to improve liquidity to help decrease immediate risks and create a long-term financial opportunity to help deal with business disruptions.
Explore the ways managing your customers, vendors and inventory can help improve your liquidity and set your business up for success – long after the pandemic is gone.
By successfully managing your customer accounts and relationships, businesses can easily take the first step to improve their liquidity. This will not only help in the COVID-19 era, but also your customer management in the future. We recommend:
Communicating with your vendors regularly not only helps to improve your business’s liquidity, but also avoids any risks in your supply chain moving forward. Your business should reassess the following regarding your vendors:
Managing your inventory successfully is imperative if you’re to be seen as a reliable company – in the midst of a pandemic or not. Easy steps to evaluate your current inventory management strategy include:
As companies have learned their unique critical risks the hard way over the last year, it has been an eye-opening opportunity to understand the weak spots of daily operations. Improving your business’s liquidity allows you to improve your financial situation relatively quickly, as well as poise yourself for operational success that will last for years to come. By focusing on these three areas of improvement, companies can reassess their business models and emerge ready for success for other challenging times. If you have questions about your business’s liquidity, contact the dedicated CPAs and advisors at Doeren Mayhew today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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