How Accounting Can Keep Your Company Afloat During Times of Change

Accounting is a business-critical function, and it can be a key driver of success in times of change. Historical data can be utilized to plan future strategies and keep the company in good financial standing, even in the face of uncertainty like rapid growth, mergers and acquisitions, and even scaling down.


Guarding Against Negative Cash Flow

In times of change, many organizations lean on financing from investors or banks. Loans create an influx of money, but they lead to negative cash outflow as the company manages monthly payments and quarterly or annual balloon payments. The business must find ways to generate capital in order to make those payments while also generating profit. The accounting and finance team can work closely with business leaders to review finances regularly and develop strategies to ensure all obligations are met while mitigating against loss.


Choosing Optimal Strategies

During times of change, businesses lean on accounting strategies to maintain profitability. Those strategies include:

  • Expanding profits – Often requires reinvestment into the business through leadership salary cuts or other means.
  • Increasing income – May require price increases, rapid new product development, etc.
  • Developing strategic partnerships – Developing strong contracts with vendors for better prices, leaning on other companies for outsourced processes, etc.
  • Diversifying – Selling new products and services or expanding into new business lines.
  • Streamlining processes – Cutting costs, increasing efficiency.

Each strategy will require focusing on different aspects of the business itself, and it is essential to choose the right strategy to ensure the proper balance of cash inflow and outflow. The number of options available to accounting teams and business leaders depends upon the size of the organization, the current state of the business, strength of operations, and the strengths and weaknesses of the current workforce.


Accounting teams are critical when it comes to helping the organization strike the delicate balance between the prices customers are willing to pay and the operating expenses of the business to ensure profitability. They must also be able to speak up and be honest with business leaders about whether or not scaling up or down is fiscally achievable given the current landscape.


Is Your Organization Ready To Tackle Change?

Accounting is a crucial piece of the puzzle when it comes to navigating business change. Whether growing rapidly or scaling back, finances are the key to success.  In order to successfully navigate change, your organization must have the right people in place to ensure the company can achieve its end goals.


If your company is seeking top accounting and finance talent, or you want to improve your accounting and finance hiring processes, contact the expert accounting and finance recruiters at Contemporary Staffing Solutions today.