2022 could be the perfect time to get started with an external CFO if you are a WA business.
Not far into 2022 we will be two years into the pandemic and while WA businesses have been affected less by the pandemic than other places, with WA even being rated as the best economy in the world at one stage during the pandemic, 2022 will be the year when the WA border will re-open and businesses may need to think differently than 2021.
The WA Government has set the reopening date to be February 5th for the WA border. It is very likely that at some point next year WA will be affected by community transmission of covid-19 and this will be something WA businesses may need to be aware of.
1) Uncertainty of the border opening
When the WA border opens and covid-19 spreads in the community, businesses may be struck with uncertainty.
Depending on the industry your business is operating in, you may be affected in a different way. While the government has indicated that community transmission will not automatically send us into lockdown as it has in the past, it is possible that as has occurred elsewhere in the world, customers may change their purchasing behaviour simply because there is Covid in the community.
One of the key advantages of an external CFO is that they provide strategic business advice which sets your business in the right direction.
Particularly during times of uncertainty, external CFOs provide a expert voice that can calm situations because they are not swept up in the day-to-day of running a business.
2) Gaining financial insight
Financial insight is absolutely critical when there are times of business uncertainty.
An external CFO will provide your business with clarity regarding your financial position.
If your business makes an adjustment during 2022 an external CFO will be able to tell you what exactly that adjust has meant for your business, and will provide financial insights regarding what could possibly happen if other adjustments are made.
An external CFO will provide budgeting and forecasting which can steer your business in the right direction when adjustments need to be made.
3) Taking advantage of a growing economy
The first three quarters of the 2021 calendar year saw a growth of 4.8% for the WA economy. Business conditions in WA are currently strong.
It is likely WA will experience economic growth throughout the 2022 calendar year. The border opening may contribute to this growth.
These conditions will mean your business may be ready for growth in 2022.
If your business is in growth mode, the financial decisions you make are critical. When businesses overestimate their growth and invest too much, they undertake serious risk. When they underestimate their potential, they leave dollars on the table.
An external CFO helps you determine how much growth is just right.
If you would like external CFO help in 2022 for your WA business, get in touch.
Phone: (08) 9208 4000
Email: info@lgas.com.au
Address: Suite 3 24 Muriel Avenue Innaloo, WA 6018 Australia
ABN: 84 797 521 267
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