Is this another sign of the times ... ?14th August 2008
I have just read on "Accountancy Age" - the weekly journal for the accounting profession (yes - sorry - a small concession to being an Accountant!!), that two of the largest firms (PWC and Deloitte) are actually running specific training for their staff on spotting early warning signs in their clients.
I am determined not to fill this blog with constant talk of the credit crunch - but I do find it rather interesting that these guys feel it is worth investing what is no doubt not an insignificant sum on ensuring their staff are "ready". I am sure they would not do it if they did not feel it was worthwhile.
They are focusing on compliance and banking facilities, and the managements view on risks and prospects - as well as cash flows of course.
It is no doubt true that what might well have been valid positions to take only twelve months ago do not hold true now. We have seen the fortunes of businesses turn rapidly, often made worse by the managements apparent complacency in their position.
You must constantly review where you are and what is going on around you - and ensure that your financial management and control is really giving you what you need to run a strong and robust business that can weather this storm ...however strong it turns out to be!