• Try To Know Where You Are Earning And Losing Money
The company must make an effort to revise the revenue forecast to ascertain the current situation and they must make alterations in the budget in accordance with the latest information about the prevailing situation. The company must try to identify the product, services or clients who are profitable and which are not.
For this process the accounting company can provide assistance by performing an assessment of the products and the clients which provide more profitability this assessment report can be used to focus and shift its sales on the products and clients which are profitable. It may at first sound like a loss but cutting the least profitable products and customer helps the company cut down the cost and overcome the downturn by just focusing on the profitable products and customers.
• Keeping The Focus On The Core Competencies
When there is no economic crisis or downturn then the companies can focus on diversifying their activities even though it is risky, but it will provide more profits. During a pandemic or recession, it is always the best course to focus on existing profitable activities and clients rather than planning to diversify or investing in new projects about which you don’t have any sufficient information.
