With Ammu Chartered Accountants
Recession Proof Your Finances
Recessions are part of the business cycle, and while it can be scary, there are steps that can be taken now to help you survive, even thrive, in recession like conditions. So here are some ideas to get you started. Many apply to running your personal finances too!
Firstly, get a handle on the numbers in your business. Make sure you have a good understanding of where your business currently stands financially. Careful cash flow management is essential for staying afloat. Also, it’s important to pay off debt so you don’t find yourself struggling during a recession. In addition, having an emergency fund can help cover unforeseen expenses or drops in revenue.
Having a good understanding of business expenses and revenue streams will help you make informed decisions when implementing cost-cutting strategies or seeking additional financing opportunities.
Getting to know the numbers and making informed decisions are driven by data insights. So with the right accounting tools to track cash flow and resources you are ensuring your outlays are managed easily and efficiently.
Prepare To Pivot!
Another key factor in recession-proofing your business is being prepared to pivot. Pivoting could mean having flexible working relationships with existing customers. Also exploring new opportunities.
Be open to change, see how you may be able to adjust your operations or services to sustain profitability throughout a downturn.
Finally, it’s important for entrepreneurs and business owners to keep learning about best practices. Join our Director, Simon Murrison, at the quarterly Business Journey, held at the Corinthian for a focus on learning and action taking. Keep an eye on Ammu socials for info.
By taking these proactive steps now, you are making sure your finances are ready, no matter what 2023 brings.
Ammu Chartered Accountants
10 Newton Terrace G3 7PJ
0141 290 0262
ammu.uk
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Twitter – ammuaccounting
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