How to establish financial stability in the chaotic climate of Brexit
Brexit was expected to take place at the end of March – but as anyone who has followed the news will know, that’s not what happened.
Prime Minister Theresa May continued to find that she couldn’t get the deal she needed through parliament, and as a result, the date of Brexit has been thrown into a place of particular uncertainty.
The current potential exit dates range from mid-May to the end of October to any deal-friendly moment in between. For a finance leader, finding a path out of the uncertainty is key. Here’s how to do it.
What businesses are saying
If you’re a finance leader worried that you’re the only one who doesn’t have a handle on the impact of the Brexit debate, don’t be. It’s actually the case that many leaders in the business world are feeling the same way.
Just this month, the UK-wide chair of the Federation of Small Businesses, Mike Cherry, said that there were big question marks in place. “With Brexit on the horizon, serious questions regarding future funding for a UK small business support network that’s heavily reliant on the EU remain unanswered,” he argued.
Unlock your organisation’s data
In terms of practical steps forward, the first thing to do is to ensure that you’re armed with the information you need to make good decisions. If you’re not a current user of a financial software package that has a data harnessing capability, now is the time to make the case to the C-Suite to invest in such a package.
Data packages may seem on the face of it to be expensive options for dealing with the uncertainty, but they often pay off. Data solutions can, for example, identify where your current supply chain weaknesses are, and can also give you the reassurance of well-forecasted revenue streams in relevant timeframes – such as the next few weeks or months.
As well as using data, it’s a good idea to also fall back on that old tried-and-tested approach to dealing with uncertainty: identifying what your worst-case scenario is and making decisions based around it. Say a key client of yours is based in a major European economy and you’re concerned that they will find your firm less commercially attractive in the event of a difficult Brexit.
Speaking to them about their own intentions is a wise move. Setting aside some additional cash for marketing in the event that you need to recalibrate your client base, meanwhile, could also be useful.
For many finance leaders, especially those who aren’t in the tiny 2.2% who told AccountingWEB that they performed strategic analysis, making this kind of decision could be scary – but it could also be what saves your firm in the long run.
Brexit has proven itself to be a real challenge to organisations and businesses that are looking for the certainty they need to take key decisions around investment, procurement and more. However, with a bit of forward planning and a strong pivot towards data solutions, it’s possible to get the financial stability you need for the future.
Our finance software is a great way to tackle the problems of Brexit head on. Learn more about it here.