Home Blog FinanceEN How to make your controlling fit for times of crisis

How controlling helps, companies navigate through natural disasters and other crises.

In recent years, we have learned how quickly seemingly certain things can change. For example: by June 2024, three severe weather events had already led to flooding in Germany – around Christmas, in May and now again in June.

In each of these events, both private individuals and companies suffer considerable damage. They have to clean up and look for solutions, because life must go on.

Important tasks of controlling in crisis situations

Controlling plays a crucial role in these challenging times. It supports companies in assessing damage and quickly resuming operations. Controlling performs the following tasks:

Damage management and documentation

After every storm, the damage caused must be assessed and documented. This is essential for insurance claims and the financing of reconstruction. This is a major challenge, especially in the case of extensive damage.

Liquidity management in times of crisis

One of the biggest challenges for companies during and after natural disasters is maintaining liquidity. Creating updated liquidity plans and securing emergency credit lines are key here.

Cost control and budget adjustments

Companies must review their budgets and adapt them to the new circumstances. This often means cutting expenditure and reprioritizing resources.

Communication with stakeholders

Transparent and regular communication is of great importance. It is important that all parties involved (employees, customers, suppliers, investors) are kept up to date in order to promote trust and cooperation.

Risk management and future planning

Based on the experience of current emergencies, controlling should develop measures to minimize risks for future crises. This includes analyzing how risks can be better managed, for example through insurance cover, infrastructural improvements or a more flexible supply chain.

Support with reopening and strategic realignment

Controlling should support the planning of the reopening of damaged business premises and warehouses, including the reassessment of the required personnel and operational resources. In the long term, a strategic realignment may also be necessary to make the company more resilient.

Prerequisites for effective controlling

In order to provide these services effectively, controlling must be well positioned. This requires

– Having correct and complete figures available in a timely manner

– Employees’ analytical skills

– Data quality and integrity: The integration of data sources plays a key role in providing a coherent picture of the business situation.

Managers must be aware of the critical aspects and prepare for them. In practice, data complexity is often underestimated, contingency plans are lacking or risk management is neglected.

Support from Cost Accounting 365

Cost Accounting 365″ is also there to help you with unusual challenges. When it comes down to it, the module offers:

Detailed cost unit and cost center accounting, which is helpful when assessing damages and documenting for insurance claims.

Comprehensive analysis and reporting functions that help companies keep a close eye on their finances and update liquidity plans.

Cost and activity accounting functions that help to reprioritize budgets and optimize costs.

Want to learn more? Attend one of our upcoming webcasts.

You can find more information and register here: Cost Accounting 365.

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