April 6, 2020
An Interview with Nick Florio, CPA, CEO and Founder of Strategic Staffing Consultants
Borosko: What are common mistakes that staffing firms are making in forecasting cash flow in this crisis and what advice are you giving them to correct these mistakes? Florio: It’s almost impossible to predict what collections, or billings may look like right now. Everyone is reacting differently to this health crisis. Some staffing companies are experiencing large surges in sales, in particular from the healthcare and IT support sectors. Others have experienced a steep fall off in business as retail clients are closing their doors temporarily.
Whatever it is that a company is currently projecting, they would be wise to have 2 or 3 different scenarios of a cash flow model. They also need to be able to respond quickly by making changes in overhead if both revenue and collections decrease dramatically.