Monitoring Your Company's Financial Health

 

No one knows how long the Covid-19 pandemic will impact our daily routines and the economy. Given the magnitude of this public health crisis, the first priority for all companies must be protecting the health and safety of their employees, customers, and community. (Resources available here.)

For finance and executive teams, your next logical priority will be to assess your company's financial health. You'll want to update revenue forecasts, review your budget, model different scenarios, and identify opportunities to trim expenses or reallocate spend. Taking action quickly will not only help you weather periods of uncertainty, but can also help your company rebound stronger than ever when the crisis passes.

Our goal at Center is to help businesses make the most of every dollar—and hour—spent. These tips will help you stay nimble and course correct by keeping a close eye on your company's expenses. 

"This is the time for a more fundamental review of the financial infrastructure of your company so you can determine how to protect your business from evident risks." 

center logo

Brian Maslen
Corporate Controller, Center

Reducing Financial Risk

 

It can be hard to feel like you have much control with so much volatility and uncertainty. Finding a balance between over-reacting and waiting too long to take action means relying on a few key principles to guide action.

Here are a few to consider:

 

STAY NIMBLE: When reviewing your expenses, identify and move away from fixed costs if possible. Avoid sole-supplier dependencies by identifying other vendors.

INVEST STRATEGICALLY: Halt initiatives that aren't performing, and invest in programs that will produce near-term revenue, retain current customers, or have long-term impact.

BE MINDFUL: Avoid "spend inertia," the tendency to renew contracts and subscriptions without much analysis. Make every investment, big or small, a conscious decision that aligns with your company goals.

INCREASE PRODUCTIVITY: Find ways to work more efficiently by streamlining manual processes and systems. Look for tools that automate routine tasks so you can do more with less.

BE PREPARED: Plan for disruption, model what-if scenarios, and use real-time data to iterate as needed. Shore up your company's cash reserves and think strategically about credit options.

WORK TOGETHER: Reach out to managers and employees for help identifying which programs or purchases could be postponed or eliminated. A spirit of collaboration will drive better commitment and follow-through.

How Center Can Help

 

In times like these, discretionary expenses like travel and software subscriptions tend to be the first place people look to make short-term adjustments.

Center's real-time expensing solution can help: you'll gain full visibility into all employee spend, with flexible spend controls and up-to-the-minute expense analytics.

You'll have the data you need to make informed decisions, all at a fraction of the cost of traditional expense software that can cost thousands of dollars a month, yet still require significant manual work.