With Covid-19 still impacting businesses and wrongful trading rules back in effect, counsel must work with companies and directors to ensure business decisions stand up to scrutiny.
As a result of prolonged shutdowns and changing consumer demands, many organisations continue to face problematic declines in revenues and cash shortages as the pandemic persists.
As short and long term obligations become due – and the lifelines of government support programmes dry up – companies will face increasing pressure to effectively manage cash with the threat of insolvency looming large for many.
In light of these challenging circumstances, companies would be prudent to reassess their forecasting strategies to ensure forecasts are sufficiently robust, providing decision-makers with sufficient visibility to make operational decisions that can help keep the business afloat through potential cash shortages.
In this month’s edition of The Lawyer, FRA Partners Anant Modi and Jenna Voss present forecasting strategies that counsel, companies and directors might consider implementing, engaging independent advisers where needed.