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Businesses need to review business plans, reallocate resources

Businesses need to review business plans, reallocate resources

Businesses
will need to review their business plans and reallocate their resources to
optimise future returns after surviving the COVID-19 pandemic, said Baker Tilly
Malaysia.

Global
Business Solutions director, Loke Chee Kian said chief financial officers
(CFOs), together with other C-Suite officers, should adopt transformative
mindsets subsequent to the pandemic.

“To
chart the business to the next level and to be ready for the new normal, new
budgets need to be developed and set; a remote key performance index monitoring
and managing system should be established; risk management systems should be
revised and a business continuity plan should be developed,” he said in a statement
today.

For
all of the above to happen, Loke said, a business should first be armed with an
efficient and effective information system, which is where digitalisation comes
in.

“So,
if your organisation is still managing information and data manually, it is
time to consider a change,” he said.

Prior
to the pandemic, the CFO’s goal is generally focused around financial growth,
which is measured by the return on investments (ROI) for every ringgit
invested.

“The
higher the ROI generated, the better for the business as it means that the
business is utilising its financial resources efficiently and effectively,” he
said.

However,
now the CFO is also tasked with answering the million-dollar question – how
long will the business be able to survive?

“For
a business to emerge from this crisis, the CFO plays a crucial role in ensuring
the continuity and sustainability of the business,” he said.

In
the immediate term, Loke said, the CFO will have to review the business’ cash
flow position as well as devise a survival action plan for the business for at
least six months.

A
competent CFO should also be able to identify opportunities for the business
amidst this crisis, he said.

However,
he noted that the extent to which the CFO can contribute is dependent on the
availability of an updated set of accounts, an efficient accounting system as
well as a supportive finance team.

Baker
Tilly is one of the largest accounting and business advisory firms in Malaysia,
with 50 partners and directors, eight offices across Malaysia and an office in
Phnom Penh, Cambodia, as well as over 800 professional staffs.

Source: Bernama 

Posted on : 13 April 2020
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