Helping Clients Survive Hard Times

Many managers are not prepared or experienced enough to understand how to run a business when times are difficult. CPAs are uniquely qualified to help during such times. The first thing called for is an objective assessment of the business's current health and what can be done to pull it throug...

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Bibliographic Details
Published inJournal of accountancy Vol. 172; no. 2; p. 81
Main Authors Harnish, Michael W, Bauters, Fred J
Format Magazine Article
LanguageEnglish
Published New York American Institute of Certified Public Accountants 01.08.1991
Subjects
Accounting
Budgeting
Budgets
Client relationships
Consultants
Corporate finance
Corporate profits
CPAs
Customer relations
Customer services
Employees
Finance
Financial counseling
Inventory
Inventory control
Productivity
Profitability
Purchase orders
Recessions
Strategic planning
United States > US
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Summary:Many managers are not prepared or experienced enough to understand how to run a business when times are difficult. CPAs are uniquely qualified to help during such times. The first thing called for is an objective assessment of the business's current health and what can be done to pull it through difficult times while keeping it moving toward the company's long-term goals. This takes a great deal of skill and a good diagnostic approach. CPAs can start by developing ratios that will help determine the business's state of affairs and why it is that way. Critical indicators that will be helpful include the personnel productivity ratio, all other expenses, and net profit before taxes. It is important that companies review their strategic planning during slowdowns. Practitioners might perform reviews of clients' basic strategies and tactics, company focus, and customer orientation.
ISSN:0021-8448
1945-0729