The ripple effects of Covid-19 are still unfolding on a global scale and it is unlikely that the true impact of this pandemic can be measured until the situation stabilizes. Until such time, businesses both big and small are challenged to manage their cash flow position as their first line of defence.
Left unmanaged, even the most profitable business can rapidly become unsustainable if cash controls are weak and visibility over cash pipelines is limited.
Managing Partner of KPMG in Malaysia, Datuk Johan Idris said, having a tight grip on cash management will provide companies with valuable breathing space in times of crisis. This is especially true for small businesses, where having cash on hand makes the difference between being operational or foreclosure.
“In these unprecedented circumstances, businesses must be prepared not only to weather the current storm but also have the capacity to sail safely back to shore once the seas have calmed.
“Improving cash management is one of the quickest ways for businesses to find some stability during this uncertain time, with an added benefit of reducing debt, funding growth and providing better stakeholder returns,” he said in a statement.
