Are CFOs prepped with their best strategies in case of a recession?
After a trigger in the labor market indicated an impending recession, CFOs are on edge, but should they be worried for their businesses? CFOs will need to strategize with a secure financial plan to weather the uncertain economical landscape ahead.
Major concerns about the job market surfaced as the unemployment rate rose by 0.2 percentage points to 4.3%. Without a rate cut from the Federal Reserve, a recession could be underway. Better to be prepared than not. Here are four strategies CFOs can implement to ward off recession scares.
To do:
-Create a stout reserve fund: ensure there is extra cash in a reserve fund that can float the business in trying times.
-Audit revenue cycle to increase profitability, there may be unrecognized issues that are costing the system valuable dollars.
-Diversify revenue streams as much as possible, a diverse portfolio is a stable portfolio.
-Strategize growth opportunities, carefully decide on growth opportunities that donโt present a high risk.
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Marie DeFreitas is the finance editor for HealthLeaders.