Bohemia, NY (PRWEB) September 10, 2013
Lawrence Teicher, Long Island accountant and founder of CFO Consulting Services, LLC, responds to an article published by CFO.com, which details the importance of preparing a company for economic cycles.
According to the article published by CFO.com on August 8th titled “How to Get Ready for Economic Cycles,” businesses prepare more for power outages than they do for upcoming economic cycles. While business continuity plans are essential to keep companies afloat during natural disasters, power failures and system crashes, companies should also have a plan to offset the negative effects of an economic downturn.
The economy goes through cycles, which, on average, peak every 106 months. The article says the last peak was in December of 2007, so there should be another peak in the coming years. However, every peak comes with a downward slope.
Lawrence Teicher, Long Island accountant and founder of CFO Consulting Services, says preparing a company for the next economic downturn will help it minimize losses and keep it stable. “Often times, a company will lay off employees and cut departments during a slow economic downturn, which could be expensive and disturb production. In the interest of keeping up business momentum, it’s wise to prepare now for dips in the economy.”
Teicher says there are a few things to keep in mind when preparing for the next economic cycle.