With economists speculating that a recession is looming in the near future, a lot of businesses are taking steps to protect themselves and their employees from feeling the sting of a downturn in business. Many companies and workers went through this during the 2008 – 2009 recession and want to be better prepared this time. That is prompting some of Canwest Accounting’s business clients to meet with them before making any major capital purchases.
“We can help business owners plan for those major expenses, like purchasing a new truck for their business,” says Sharlane Bailey, owner of Canwest Accounting, with offices in Victoria and Langford.
Sharlane looks at the business’ accounts and current income and expenditures and will advise on the best way to go about planning large purchases while still maintaining a healthy bank balance to help cushion the effects of a recession. She says a lot of business owners she’s spoken with are concerned about being able to keep their employees working through a recession, particularly in the construction industry, which is typically hard-hit during downturns in the economy.
Other company owners she’s been speaking with are cautiously sitting back and watching for what will happen before endeavouring to launch into any expansions or take on any large expenditures. This includes purchasing commercial real estate.
“Escalating interest rates are also contributing to some businesses holding off on making big purchases,” says Sharlane. “What we’re seeing is that no one wants to make any big financial moves right now until the extent of this upcoming recession is known.”
She recommends that businesses meet with a professional to review the status of their accounts, so they can recession-proof their business as much as possible.
To have the exceptional team at Canwest Accounting save you time and money by consulting on how to recession-proof your business, doing your taxes, bookkeeping, tax planning for your business, or filing estate returns, call or email us.
The suggestions and advice provided by Canwest Accounting should not be relied upon in place of professional advice. You are responsible for checking the accuracy of relevant facts and opinions provided.