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Recession Plan for Long-Term Growth

Achieving financial security while seizing opportunities becomes a challenging balance among industry competition. Our consultants can work through the various course strategies, identify and address roadblocks, and provide prudent methods and insights to achieve company progress and goals.

Main Service Contents

  • Budget Strategy, Cost Management & Cash Flow Analysis
  • Financial Statements, Tax Return, Tax Credits
  • Accounts Receivable & Payable, Financing Application
  • Capital Gain/Loss calculation, Estimated Tax
  • Business Process Outsourcing Services & Strategy
  • M&A and other investment opportunities

Explore Risk Reduction
During a challenging economic downturn, it is recommended to request the latest financials to understand the current state of your company.  You may request consultation with accounting and tax to understand company projections and discuss how the changes in economy may affect regulatory and tax requirements. Securing capital before the rush of requests and before the bank increases rates could save interest and loan fees. Qualifying for a loan or line of credit may require credit information, recent company financials and tax return, and to demonstrate the business income and profit as determined by lender underwriters.

The monthly Profit & Loss and Cash Flow Statement can help with budgeting expenses, revenue and cash flow projections, and to have a strategy for operating scenarios. Business owners can address the “low-hanging fruit” items, such as discretionary costs, before considering the employee costs that may result in hour reductions, furloughs, and/or layoffs. With maintaining adequate bookkeeping, business owners can address the details of COGs, operating expenses and non-operating transactions without missing data or misinformation. During these times, the federal, state, and local government may offer incentives and refundable credits given the qualifications are met with gross revenue, net profit, and provided the oversight of current tax records.

Confirmation of the Balance Sheet can provide more details on converting assets or liabilities. With the economic uncertainty, it is recommended to maintain an extended emergency fund, such as a minimum of 3-6 months worth of expenses. Accounting can assist with managing Accounts Receivable through installment plans, collections processing, and/or bad debt deduction. Conversely, the Accounts Payable should be maintained to avoid penalties and interest, where installment payment, abatement of fees, and avoidance of liens/levies will require diligence. Business owners can determine the benefits from offloading excess inventory or the capital gain from liquidating business assets. Planning how to sustain existing payables and avoid missing payments can make a difference financially from penalties and fees but can be encouraging with peace of mind.

Invest in Technology
The recession may challenge business sales and implementing cost-savings, however industry competitors, customers and vendors will undertake similar considerations. The economic cycle creates a demand for innovation, and meanwhile the vehicles of past success will evolve correspondingly. We believe technology is at the center of business transformation, and businesses that invest in technology can take advantage of opportunity cost while also it may reduce current expenses.

Globalization & Outsourcing
Outsourcing payroll, accounting, and/or tax can have benefits in cost, stability, and accountability and as a long-term solution. Small- and mid-size companies can rely on outsourcing peripheral business processes to compete in today’s market and to get an upper hand against higher competitors. Remote work and domestic/foreign outsourcing has become common among US companies.

  • Administrative Staff Reduction and/or Knowledge Continuity
  • Expertise as Verification and Accountability
  • Professional Office staff and support representation for industries and companies not requiring a full-time office
  • Virtual Office & Registered Agent service

Prepare and Seize Opportunities
The recession may provide unique opportunities for buyers. If the strategy performs as planned, you may find yourself in a unique position to get ahead of competitors. Often many companies focus on internal changes and decisions during the recession. Consider M&A trends and opportunities, including the costs and effects of integration and post-transaction growth strategies. Furthermore, business owners can consider the investment of assets as opportunity cost that will provide a return on investment. Keep in mind that the next recession may not proceed in the same historic pattern and that scaling should proceed with diligence of financial capacity. 

The information provided here is intended for informational purposes only and does not substitute for professional advice. Please refer to the terms of service for website usage.

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