Businesses need to review business plans, reallocate resources
13 Apr 2020
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.