The initial step that needs to be taken to prepare for the new normal condition is to examine various components of income and expenses in the business process. From the revenue side, checking the cash position and emergency funds held by the company during a crisis or before the new normal period is important. The reason is, it will affect business plans when new is normal in the future. Additionally, if you also need a bookkeeper who can assist your business during the new normal period, we suggest you call Richard Darcy Gold Coast Bookkeepers.
From the expenditure side, you can check what costs were previously cut with the aim of frugality during a crisis. Then, consider the costs that need to be added to expedite the production process when new is normal, after previously saving a lot.
The next step is to reset the company’s cash flow conditions. You can re-plan the right cash flow strategy in accordance with the projected changes that occur in the future. Re-planning includes a matter of changing the financial budget according to the estimated new business activities in the new normal phase.
Re-planning the budget in cash flow can be based on past values, so that you get a comparison between the conditions of income and costs before the crisis and during the crisis. Referring to the data, you can determine the budget plan for the new normal period. For example, again increasing revenue targets and costs as the production process is expected to increase.
In rearranging cash flows, make a realistic budget. That is, it does not mean optimistic, nor pessimistic, but in accordance with the reality on the ground.
You should not spend a lot of time re-planning perfect cash flow but execute it perfectly.
When rearranging cash flow, you need to involve the right people who are experts in managing finances, such as financial consultants or public accountants. This involvement will result in a greater commitment in meeting the company’s expectations. It’s not enough to involve the experts, so you can also use the help of technological devices to reset cash flow to make it easier and faster.