Implement cash conservation and recovery actions
Business continuity & financing | Respond: Prepare for and manage continuity
Working capital solutions for businesses with urgent cash needs
Liquidity under pressure
The revenue lost by businesses during the COVID-19 crisis represents a permanent loss and is putting sudden, unanticipated pressure on liquidity. Many businesses across a multitude of sectors are finding that they need to approach their suppliers, customers, and financiers to arrange short term solutions to support their cash flows. This article identifies why companies may experience cash flow issues and what actions they can take to address short term working capital requirements.
Topics addressed in this article:
- The impact of the COVID-19 crisis on businesses’ cash and working capital
- Cash flow forecasting and steps to take to ensure robust cash management
- Levers to release pressure from working capital
Tax incentives and government relief to combat the impact of COVID-19
Addressing the impact of COVID-19
In this piece, Deloitte Global examines the outbreak of COVID-19 and the uncertainties that it has brought to economies worldwide, including cash flow and financing pressure and business continuity issues facing companies, especially small and medium enterprises and those in such industries as transportation and hospitality.
Insight and lessons:
- Closely monitor and map out eligible tax incentives and government relief
- Take stock of pre-existing preferential tax treatments
- Assess cash saving opportunities
- Ensure continuous tax compliance
Addressing the reporting challenges of COVID-19
Board and financial reporting considerations
During the COVID-19 crisis it is vital for boards and key management to develop and implement strategies to facilitate information flow within their organizations. This is to empower informed decision-making, compliance with rules and regulations, and effective stakeholder management.
Insight and lessons:
- Board function is essential to ensure effective management
- Importance of monitoring and assessing strategic, operational and financial impacts and formulating mitigation strategies
- Ensure effective internal and external communications strategy to employees and stakeholders
- Six consideration for financial reporting
- Understanding the potential effects of the COVID-19 outbreak on disclosure requirements.
- Design a robust communication strategy to overcome any challenges to reporting obligations
Navigating the impact of COVID-19 on accounting operations
The pressure to deliver timely, accurate information
It is clear that finance functions will need to quickly adapt to the direct and indirect impacts of COVID-19. This is specifically relevant from a financial reporting perspective, with challenges mounting related to immediate reporting requirements. This article discusses how COVID-19 is affecting financial accounting and reporting, the capacity of the finance function, cash flow reporting, and stakeholder reporting.
Topics in this article include:
- Common accounting issues that need to be considered in light of COVID-19 impact
- How to address capacity constraints finance teams will face due to disruptions and increased demand
- Addressing cash flow reporting requirements and stakeholder communications strategy