Accounting and auditing firm, KPMG, is advising businesses to prioritise cost optimisation and improving liquidity in this era of changing world.
In a paper titled: “Staying Resilient” at the Ghana Economic Outlook 2023 organised by the Ghanaian German Economic Association, it said there is no better time than now for companies to begin preparing for the future.
“The world is about to face another test of resilience, but the struggle is nothing new. Businesses are taking cues from the experiences during the pandemic [Covid-19], upskilling their teams and preparing for the possible by laying the groundwork for longer-term growth. These measures will help you build resilience and prepare adequately”.
On cost optimization, KPMG urged businesses to monitor account receivables effectively to ensure prompt payment, optimize inventory by determining inventory levels needed to meet customer demand at the lowest cost and renegotiate payment terms with vendors whenever possible to keep money longer.
Others are disposing unproductive assets incurring costs but directly or indirectly facilitate in generating revenue and assessing the overhead costs.
Regarding upskilling the people and building a team, KPMG urged business to quickly assess organisational structures to ensure alignment with the evolving commercial, operational, and financial operating models.
It also appealed to business to give employees reasons to believe in the future of the company and contribute to the company’s success through a difficult period, adding, “a more engaged workforce leads to higher retention and lower turnover costs”.
For digitalization of business processes, the auditing firm said amid economic headwinds and the threat of recession, businesses should deploy the right digital strategy and technologies.
First, it want a permanently reduction in the cost of doing business, an improvement in customer and employee experience and competitive edge as a result of insights.