As sound financial controls become increasingly important in the current economic climate, BDO Stoy Hayward LLP has launched a microsite that aims to help companies survive the credit crunch and prepare for challenging times ahead.
Mike Prangley, business restructuring partner at the accountancy firm, warns firms against burying their head in the sand:
“Navigating the downturn can be a very difficult issue for many businesses and a significant number are struggling to survive 2009.
“We are urging directors to properly equip themselves with the advice and guidance that can help them stay afloat, as failure to tackle difficult or uncomfortable issues head on can ultimately lead to the failure of their business.
Navigating the downturn can be a very difficult issue for many businesses and a significant number are struggling to survive 2009
“We are especially urging businesses to focus on areas of inefficiency or under-performance, particularly in the areas of working capital management – ie, getting payment from customers, managing suppliers and improving their inventory position. While a business can survive for a short time without profits, without cash it has little hope of continuing.
“Our microsite addresses a number of issues that businesses need to deal with to help them stand a good chance of getting through these very difficult times.
“This includes key survival steps, warning signs that a company may be at risk of failure, a working capital management test and a number of other topics to help businesses get through these challenging times.”
