‘Economic stress’ is such a common topic of conversation in business circles these days that it often obscures a practical discussion of the actions that businesses can take to address specific issues.
The raw truth is, unfortunately, that there has never been an optimal or stress-free economic environment in which to run a business, but rather that businesses face a range of specific challenges at specific times. 2025 is no exception, and companies today face a variety of problems including increased NIC and employment costs, minimum wage increases, higher corporate taxes, stubbornly high interest rates and borrowing costs, and global trade uncertainties.
How can businesses address these issues and other challenges that will no doubt arise in the future? In all cases, the key to protecting your business during economic stress is better and more efficient planning. Read on to find out more.
Scenario Planning For Risk Mitigation
Economic challenges are dangerous because of the way they bring unpredictability to business operations, and therefore increase risk. A regular and robust approach to scenario planning is, therefore, a vital practice for businesses facing economic stress. For example, Corporate Planner – one of the world’s leading FP&A platforms – allows users to model various financial scenarios relating to supply chain disruptions, cost increases, regulatory changes and other stress factors, using a virtual model of the organisation’s genuine data, resources, and capabilities. ‘Tabletop games’ of this type are essential for helping businesses to evaluate their capabilities and assess the potential impact of different scenarios. By visualising different outcomes and planning for multiple possibilities, companies can reduce their overall risk and respond more resiliently and agilely to changing market conditions.
Cash Flow Planning For Better Liquidity
Maintaining cash flow liquidity is essential for weathering economic headwinds, giving organisations the flexibility and breathing space to adapt plans, sustain investments, and diversify markets as needed without stress factors impacting their profitability and financial sustainability. Corporate Planner’s integrated P&L, balance sheet, and cash flow planning tools give users a clear and objective view of their financial health. With automated cash flow forecasting, for instance, you could identify potential cash shortfalls and plan proactive measures to address them before they harm your operation. This helps create a strategic framework in which organisations can meet their core operational needs whilst managing sustainable financial resources. By integrating with your ERP and other accounting systems, Corporate Planner will also give your team up-to-date and reliable access to cash flow information, reducing human error and improving collaboration.
Cost Management Planning For Greater Efficiency
Economic stress and uncertainty often prompt businesses to put plans on hold and to scrutinise every pound they spend. This is understandable, but can damage profitability and growth, and impede the ability for businesses to take advantage of emerging opportunities. A budgeting and planning platform like Corporate Planner can help your business identify any efficiencies and reduce unnecessary expenses, so that the organisation is more agile and capable of responding to unexpected stress factors. These efficiencies can come from various angles, such as by automating planning workflows and integrating data from different streams and systems into a unified dashboard, reporting and sharing information among decision makers, and importantly in understanding performance across the business and how it can be improved. This not only streamlines planning and accounting systems but can also identify redundant and duplicated processes, saving your team time and helping you allocate resources more effectively and achieving greater corporate performance. Equipped with multi-dimensional planning and reporting capabilities, Corporate Planner empowers users to track their costs and expenses in real time, so that every decision is validated by objective and accurate data.
Discover The Benefits Of Corporate Planner
The award-winning Corporate Planner platform has all the tools you need to streamline your FP&A workflows and to safeguard your organisation during periods of economic turmoil. To find out more and discover the benefits, please contact Account-Ability today by clicking here.
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