As a company owner, you have likely been dealing with all the effects of inflation as of late — the prices of raw materials have skyrocketed, shipping costs are way higher than usual, business commutes now weigh much heavier on your bottom line due to astronomical gas prices, and the list goes on. You have likely been hoping for a respite from it all, but unfortunately there may be another big problem on the horizon: a possible recession.
Periods of vast inflation are oftentimes followed by a recession, where consumers spend much less because they dealt with increased prices for too long. A drop in profits can really hurt any business, so how can you prepare for this possible scenario? In my experience as the CEO and founder of CMA Exam Academy (a Certified Management Accountant exam review program), I have discovered these must-know ways to prepare a business’s finances for a recession:
