Finance leaders from mid-sized businesses (100 to 999 employees) are known for keeping a watchful eye on nuanced signals and indicators of potential risk. And yet recent results from a survey conducted by Oxford Economics and Â鶹ԭ´´ of small and mid-sized businesses found that roughly half of finance executives from mid-sized businesses cite risk management (54 per cent) and spend visibility (45 per cent) as top challenges for their function.

In many ways, COVID-19 presented a perfect storm of cash-flow issues in a matter of days. Economic contraction fuelled by government pressure closed non-essential stores and offices. Revenue was lost due to interrupted manufacturing operations and overwhelmed supply chains. Credit risk exposure rose as liquidity constraints emerged, once-successful hedging strategies failed, access to working capital tightened, and customer accounts became riskier.

Throughout this time, demand for Â鶹ԭ´´ Ariba Discovery, a solution that was made available at no cost through the end of 2020 to help connect buyers and suppliers and keep supply chains intact, grew significantly in Australia – with buyer postings up +317 per cent and supplier responses up +339 per cent since the lockdown started in March. This demand highlighted the appetite for digital tools for businesses of all sizes to help them manage the effects of the crisis.

But just as the Australian economy was slowly starting to regain momentum, the Victorian Government has introduced stage 4 restrictions following a second wave of infections. The Treasury has estimated this six-week lockdown will cost the national economy about $9 billion. The ongoing sense of uncertainty highlights the importance of increasing resiliency with cash-flow management and digital tools, with three steps that mid-sized businesses should take to secure cash flow.

1. Ensure continuity of finance operations and workforce

Financial systems should be able to support mission-critical activities – such as urgent supplier payments, cash transfers, and trade management – whether the employees are processing them in the office or from a remote location.

When facing disruption, businesses need to make sure they have the finances on hand to keep business moving. Organisations need to ensure business continuity and reduce supply chain risk while still controlling costs and working capital. Moreover, suppliers need access to cash so they can keep delivering the goods and services required.

Â鶹ԭ´´ Ariba has been putting the power back into the hands of suppliers by affording them choice and flexibility when it comes to payment terms. This is especially important at a time when effective cash management has never been more crucial to both buyers and suppliers. This not only safeguards the supply chain, but also allows businesses to build crucial relationships and resources to enhance financial results over the long term.

2. Manage finances proactively

As organisations reforecast revenue and profitability, continued cost and cash control will be critical to rebuilding the bottom line. But as customers begin buying again, businesses must balance the need to free up working capital with sourcing the materials and talent needed to meet customer demand.

Through times of volatility or steady growth, knowing the company’s financial status is critical. This is why, in the past few months, Â鶹ԭ´´ customers have been using our technology to run daily cash forecasts. Daily reports on key figures – including the daily cash position, cash-flow forecasting, the structure of free cash flow, working capital and debt – enables finance teams to do liquidity planning for at least 12 weeks.Ìý

If this kind of reporting is not already in place, financial leaders need to implement tools that provide a combination of visibility and predictive analytics. Blending data insight with guidance gives finance leaders a clear view of the business and helps future planning.

3. Balance risk with opportunity

Analysing a range of scenarios enables finance leaders to evaluate the potential impact of risks and implement strategies to enhance competitive advantage. It also means they can finetune product and capacity plans by rethinking the implications of commodity risk and monitoring external markets.

Tapping into insights from cash-flow planning analysis, finance teams can adjust their hedging strategies by:

• Addressing foreign exchange risks
• Shifting limit management practices for ad hoc tasks
• Mitigating credit risk within the supply chain
• Reshaping the funding strategy with extended credit lines and new sources of liquidity
• Adjusting the ongoing operating model and updating the existing business continuity plan

4. Respond to the challenge and get ready for what’s next

Whether running in good financial shape, struggling for profitability, or facing low cash reserves, all mid-sized businesses can become vulnerable to cash-flow instability. It doesn’t require a global pandemic to experience it.

In the short term, state and federal governments are supporting businesses with emergency loans and payments. But as these forms of business life-support are withdrawn in coming months, organisations will need to find new ways to manage risk, increase resiliency and maintain profitability.

So, how do high-performing finance leaders help their business navigate through times of volatility and financial opportunity? It all comes down to a foundation of timely, meaningful and predictive insight with guidance on the potential implications for financial status, performance and viability.

To find out more about how Â鶹ԭ´´ can help small and mid-sized businesses, visit .Ìý

The post How SMEs can avoid the cash-flow crunch appeared first on Â鶹ԭ´´ Australia & New Zealand News Center.

But through all these adjustments and challenges, it is people that are leading change, ensuring people’s safety, and developing new ways of working during times of uncertainty.

People’s work-life balances and mental wellbeing have always been critical aspects of human development, but now we are realising its real value in maintaining business continuity and ensuring people adapt to change. How does a person maintain a healthy work-life balance when work and personal lives share the same environment?

COVID-19 has highlighted a fundamentally human need to during this challenging period. We’ve seen Â鶹ԭ´´ customers work closely with staff by being available, responsive, transparent, and communicative. Managers are understanding the less technical needs of employees that still greatly influence their experiences and performance.

At Â鶹ԭ´´, the of our people is always one of my top priorities and something our leadership works on daily, but during this time of uncertainty, we are dedicated to it now more than ever. Our people are at the frontline of implementing change and ensuring our business can operate safely and seamlessly regardless of circumstance.

Working from home can be challenging, particularly for those with young children, however our finance team have benefited from Â鶹ԭ´´ ANZ’s investment into the to ensure everyone was well set up to work remotely. We wanted to make everyone feel as comfortable and well supported as possible throughout this journey, especially as our team helps the business navigate through this turbulent economy and its varying impact on our customers and partners.

Work-life balance is a struggle at the best of times, but now it’s so important employees find time to pause and recharge.

We want to ensure our team is doing well and provide an open forum for everyone to express concerns, show vulnerability, and collaborate in a way the empowers people. Creating a spirit of openness can be challenging when working remotely, but its easily facilitated through regular communication and by demonstrating a shared sense of empathy – after all, these extraordinary circumstances have touched all our lives.

To keep communication open, honesty, and consistent, I’ve been running 15-minute check-ins throughout the week for the finance team to share updates, manage workloads, and have a bit of a laugh together. We’ve learnt more about some of our teammates in these few months than we have in the past decade, so it’s a simple but powerful tool to ensure we stay connected and encouraged.

Themed dress up check-ins have also been a hit as we recently did the 80’s and 90’s with music to match. Camaraderie remains critical during times of disconnect and oddly enough, our team has felt more comfortable sharing from home.

Â鶹ԭ´´ ANZ has also developed a range of initiatives throughout the business to keep people informed, connected, and engaged. I share a cross-company weekly COVID-19 and business update to help staff understand the changes occurring and how it will impact their roles and responsibilities. The Â鶹ԭ´´ innovation team have also developed the Bridge-IT app to provide accurate real-time information on COVID-19 that staff can easily access anywhere, anytime.

We’ve provided work-from-home grants to all employees so they can improve their home-office environment while working comfortably and productively. Â鶹ԭ´´ ANZ are also running weekly fitness classes and entertainment to help staff maintain their health and mental wellbeing. One such example is our weekly ‘tools down’ entertainment session called, which I host with our managing director, Damien Bueno.

https://www.youtube.com/watch?v=6RSsjGZM0Ic

Our recent employee pulse surveys across the business point to positive staff morale across our workforce in ANZ, so I’m remain optimistic about our company’s future. Now that restrictions are easing and legislation is undergoing further change, now is the time for businesses to look further down the road – determining what practices can be changed or made more flexible to help staff stay productive and connected, both to the business and one another.

To learn how your business can help ensure continuity while keep your staff well supported and connected, get in touch with your Â鶹ԭ´´ representative and discover the right practices and technologies to get your organisation ready to thrive in a new normal.

The post Helping People Respond to Disruption and Thrive through Change appeared first on Â鶹ԭ´´ Australia & New Zealand News Center.