five strategies for recession

what should accountants worry about in the current economic downturn?

bruce w. marcus has some answers:

  1. reassess the situation. check your client list for potential weak companies. weak companies that may be caught up in the economic downturn become slow payers, and then no payers. either increase collection methods, or be prepared to let them go and cut your losses.
  2. check your firm. you don’t want to give up real talent, but in today’s climate, you don’t want to carry staff (including partners) who aren’t carrying their share of the load.
  3. think productivity. review all your management processes, from partnership agreements to cash flow management to marketing. make sure your electronics are up-to-date, and are really saving you money. look for potential return on perks and club memberships. preserve capital as best you can. and take your banker to lunch – you may need him or her.
  4. look to your marketing. it’s not an expense, its an investment. if you use it wisely, and give the marketing professionals a chance, sound marketing may give you the best return on your investment.
  5. focus on the niche industries your major clients are in. that’s where the early warning signs will be.

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