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Post By: admin August 12 2020

How a Good Financial Advisor Helps Businesses During Post Pandemic Situation

As the world is going through the pandemic crisis the financial uncertainty in the economy badly affected the business functioning. Which adversely impacted the business and investor community across the planet. It has shuttered businesses and disrupted supply chains around the globe, forcing companies to perform economic triage so as to survive. And while every company is indeed unique, when it involves tightening budgets and eliminating needless business expenses. In fact, at this point in time, you need to take the foremost decision on the wealth management of your business. As the interconnected nature of today’s business environment poses a serious risk of disruption of worldwide supply chains which ends in significant loss of revenue. Many governments including the UAE understood the severity of things very early and responded proactively, were highly organized, strategic, and technologically advanced in conducting activities in a phased manner, whilst keeping an in-depth eye on developments around the world. A financial advisor can suggest and implement the following measures to ensure financial stability in a post-pandemic situation.

Organisational restructuring for survival and success

The financial advisors provide a response to business downturns, changing nature of the business, new work methods, new technologies, new investments, mergers and acquisitions, and to scale back costs. They aim at reviving declining business, increasing a company’s market value, gaining a competitive advantage or positioning itself for growth briefly, to maintain business survival and success. 

Also read, Why your Business Needs Financial Restructuring?

When restructuring leads to downsizing and therefore the loss of employment, it's an immediate impact on the workers who lose their jobs; and it also may negatively impact the encompassing community. However, organisational restructuring doesn't lead inevitably to layoffs or dismissals. A well-designed restructuring helps the corporate for a rapid recovery.

Financial restructuring of assets and liabilities

The financial advisors identify the size and structure of liabilities and assets within the organisation before restructuring. Estimation of the total liability and assets is conducted and the extent to which it is to be reduced and increased are prioritised. Financial restructuring plan is formulated with the aim to implement efficiency programmes within the organisation for a long run.

Implements cost control measures as a relevant approach

As the pandemic situation set the production and profitability in disrupted condition, the bottom line influx was reduced. So, cutting business costs became a priority measure during the crisis. Cutting too many costs may leave your business susceptible to opportunistic competitors. For a business looking to optimize its expenses and build value during this situation, financial advisors are the best option as they guide you in the right direction.

Set budgets and contingency plans

The financial advisors help the clients to adjust their budgets as required. While many have already changed their spending habits, because they're constrained by social distancing from many of their usual activities, some will get to make longer-term adjustments. Short-term spending restrictions might sound just like the immediate ‘best’ choice to follow, oftentimes smaller but permanent cuts are often far easier to adapt to and can actually be simpler within the long-run. Staying focused on the larger picture, creating contingency plans, with reference to the budget can help clients to desire more. 

Craft the strategies to withstand crisis

The financial advisors focus on the automated financial aspects and ensure online digital presence which makes a halt to face to face meetups. The networking channels are revised with the in-line sources of money as marketing is the best strategy ever. Ultimately, the key point is that financial advisors are uniquely positioned to assist clients, most of whom are under a strangely high amount of stress at the instant. Like everything, this too shall pass, but the important thing is for clients to regulate those things that are in their power to regulate.

Analyse and improves the company’s liquidity position

A good liquidity position shows the enhanced credibility and goodwill of the firm The liquidity position is monitored through the balance sheet figures by ratio analysis and comparing them with previous figures. The financial advisors often suggest measures such as: 

  • Reduction of the overhead costs
  • Sell off the unproductive assets
  • Monitor the receivables and payables in a well systematic timely settlement

Suggests to hire part-time CFOs

Sometimes financial advisors suggest appointing part-time CFO services to ensure the smooth functioning of business with the eye of an expert person. It helps to reduce risk and uncertainty regarding the financial aspects. They provide timely decisions on investments and returns, enabling the management to implement financial stability within the organisation.

Why CDA?

CDA offers the best financial reporting service in Dubai and all over the UAE. Our skilled and efficient professionals help you in better financial management and business strategies. Our experience and our dedication are our assets, and that makes us different from others. We value your trust in us and will ride with you to take your company to overcome the impediments and accelerate to achieve your goals and fulfil your vision. CDA, being one of the reliable financial advisors in UAE helps your business in any situation whether it is post-pandemic or an economic crisis.

You may also read, Importance of Financial Statements for Business

CDA offers various other services such as Accounting Services, Auditing Services, Vat & Tax Consultant Services, Implementation of Accounting Software Services and Payroll Accounting Services. If you have any queries or need any of our services, feel good to contact us. Our expert will call you back immediately and will offer you a one-hour free consultation.