Managing your cash pressure during COVID-19

As the global response to coronavirus COVID-19 evolves, organisations are experiencing significant operational, financial and liquidity challenges. When we have been talking to our clients, their number one concern is how they can manage their cash pressures to ride out the crisis. What can you and your business do at this time to succeed at this time of uncertainty?

Assess

Gaining visibility and control over cash flows and working capital is fundamental during a time of crisis.

• Updating 13-week rolling cash flow forecasts to realistically assess your current situation. 
• Consider working capital needs in the context of overall business requirements for the weeks ahead. 
• Review all other non-trading contracts / commitments that have a cash requirement over the months ahead and reconsider their necessity.

Engage

Making cash management a boardroom priority and engaging with stakeholders early will help you to understand your current situation and reduce any ambiguity between parties.

• In order of priority, detail an extensive list of stakeholders impacted by the cash flow issue, including Customers, Suppliers and Employees. 
• Make use of funding and liquidity products and engage early with finance providers to address any forecasted deficiencies 
• Where possible seek more favourable terms from Customers and Suppliers
• Set out an agreed action plan for each stakeholder  

Get In Touch

If your business is encountering any of the issues discussed in this article, please do not hesitate to get in touch with any any of our team.

Telephone: 0539170507

Email: mkenny@rda.ie

At RDA Accountants we're working together with our clients to help them overcome the challenges of COVID-19.