Financial executives have a tough job in today’s economic environment. Not only do you need to be concerned with your own bottom line, you need to understand the “bigger picture” of outside forces which may affect that bottom line. While failing to understand those forces could blindside you, anticipating them can actually help you come out on top.
Key Principles of the “New” Economic Normal
Greater uncertainty, volatility, risk and oversight on both domestic and global fronts has created a “new” economic normal in which macro-economic events may override all micro-factors and widely taught business principles may no longer work effectively.
According to Francis X. Ryan, KM, and host of Surgent’s webinar, Perplexing Financial and Economic Issues for the CFO/Controller (FECC), becoming attuned to broad-based business knowledge and the role of professional skepticism for the CPA includes understanding these key principles of the “new” economic normal:
- Medical care in the United States and its impact on your employees and your costs
- Social Security and impact on retirement planning and employee retention
- “Fate of the States” – and whether your business location makes you more or less competitive
- Dodd-Frank Bill and impact on financial reform
- Currency – especially if the dollar is no longer the world’s currency
The bottom line is that continued uncertainty in numerous markets require financial executives to truly understand what’s going on around them.
Knowing What You’re Up Against Is Half the Battle
Having the tools you need to deal with those issues is the other half. Surgent’s FECC course not only provides guidance in dealing with the financial and accounting issues of volatile global financial markets, but also uses unique tools that deal with macro-economic forces. In addition to the above, participants will learn how to analyze the:
- Current domestic and global issues which can affect every business such as the U.S. Supreme Court’s recent ruling that rejected bankruptcy in Puerto Rico and the consequences of Brexit – the threat of the UK leaving the EU
- Impact on an organization of current economic trends such as employment, deficits, unfunded liabilities, municipal debt, workers’ compensation and interest rates
- Safety and soundness of credit and collections processes and selection of customers in an uncertain environment
- Impact on an organization of an aging U. S. population and succession planning issues
- Factors influencing cash management and the debt and equity mix to manage growth and risk
- Impact of federal, state, and municipal deficits and unfunded mandates as it relates to tax planning
The playing field as we’ve all known it has definitely changed – and will continue to do so at a rapid pace. CFOs and Controllers, in particular, need to understand the impact of decisions well outside your control in order to survive and grow.