There is no way to accurately predict how the situation with the pandemic is going to unfold, including when it comes to how demand is going to be affected, how supplier and customer behavior will change if the employee base will be available to their employers, what future government measures will be enacted and what their effects will be, KPMG (Cyprus) has said.
Cash flow of private businesses will undoubtedly be affected and in irrevocable ways, it added, saying the prudent management of cash assets and all other financial matters will be pivotal for the survival of businesses.
With this, KPMG suggests business owners act swiftly to make sure that:
- Their business model takes into consideration all revenue streams, supply chains and other ancillary services the business depends on
- Explore alternative revenue streams
- That all avenues of cost-cutting have been explored
- That they plan ahead in regards to human resources and outstanding payment arrangements with banks
- Devise a working plan for the next three months, as well as a plan for the medium-to-long term
- Create a revenue forecast for the next three months, broken down to a weekly level
- Devise a back-up plan for any emergency circumstances that may arise
- Promptly communicate all current and future challenges with all relevant stakeholders
- Move swiftly and methodically to obtain alternative or supplementary financing
Finally, KPMG advised that all businesses, including ones that don’t meet the required criteria for the recently-implemented government measures, should move to restructure any loans if deemed necessary.