Financial planning in times of crisis

Arjen SchutteMoments of truthLeave a Comment

Many entrepreneurs have gratefully tackled the government’s financial lifebuoy. All attention is focused on finding enough cash to survive now. At first glance you may seem to stay out of troubles. But is that really so?

Financial support is temporary

Wopke’s deep pockets are also empty at some point. Perhaps a second phase of support measures will follow. But once the entrepreneur will have to bear all the costs himself. Therefore, keep a close eye on how your operating result develops without the support measures. And create a new budget for the next 12 months based on your current insight and plans. How will your company perform month after month in a 1.5 meter society and during a severe economic recession?

Financial support is partly a deferral of costs

With the NOW and TOZO regulations, the government actually pays the costs. But postponement of turnover-, corporate- and payroll taxes will still be a burden for the company sometime in the future. On top of the regular charges of that period. The same applies to agreements that you may make with the owner of your property, your bank and other suppliers. A good cash forecast for the next 12 months is vital. What are the expected cash incomes and cash expenditures month to month, including the support measures?

Financial support partly increases costs

Not all support is free. The BMBK scheme in particular is simply an extra credit with associated costs and interest payments. So look carefully if you really need it and when it should enter exactly or when you actually withdraw the money. Your cash forecast is an ideal tool for this. Also be critical of the terms of the credit in relation to other financing options you may have.

If your company needs it, make good use of the financial support measures. But make sure you have adequate financial planning, both in terms of budget and in terms of cash. Not only for the coming months, but look forward at least a year.

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