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Next to health and safety issues, liquidity is of great importance to any company. It’s at the core of any company-system and what keeps the company running. Make sure you consider the following three crucial steps, to preserve liquidity and safeguard business continuity:
1. Immediately discern your current financial position
2. Take action to protect this position and consider all means of help and funding
3. Manage internal and external stakeholders accordingly
For certain companies funding is becoming very tight, and there is a shortage of cash. Foreign exchange rates and commodity prices are very volatile, and credit risk is increasing, both for clients and possibly banks.
With COVID-19 spreading across the globe, businesses face increased levels of uncertainty. Mitigation strategies such as social distancing can affect a business’s value chain on many levels.
In order to avoid liquidity-shortages and covenant-breaches, the implications of COVID-19 on your business’s financials need to be understood. So we recommend assessing the short- and medium-term financial implications of COVID-19.
To assess your financial situation and ensure business continuity, our experts recommend the following:
1. Unlocking trapped cash
2. Improving working capital
3. Drawing credit-lines
4. Applying for government loans
5. Identifying possibilities of coverage and compensation (insurance)
In a crisis, liquidity and equity must be monitored on an ongoing basis and with precision. The financial impact of any possible measures must also be validated using scenarios.
The COVID-19 situation makes it difficult to manage all indirect tax obligations and risks, but at the same time, if managed correctly, substantial amounts of cash can be freed up.
Various short-term indirect tax measures have been taken by governments to support business. These measures mostly comprise of extending VAT filing and payment deadlines, waivers of sanctions and accelerated VAT refunds. We can support you in navigating through these measures and implementing them, providing you with liquidity.
VAT measures can also be taken to protect and improve your cash position in these unprecedented times. The solutions we can help you implement may have a short, medium or long implementation period. They can include renegotiating commercial policies/payment terms, managing bad debtors, timing VAT return submissions, reclaiming VAT on employee expenses, optimising import procedures, etc.
The changing demand for certain products has resulted in an increasing need for storage. As storage in many terminals may be reaching its limits, supply chains must be adapted to meet operational needs (e.g. new locations for storage, diversion of cargo destinations). We can support you in making sure the VAT consequences of the adapted supply chains are taken care of and no risks and unnecessary costs are created, or even improving overall cash flow.
Protect your global cash tax position and support the overall liquidity management of your group or company.
In response to COVID-19, financial market regulators around the globe have taken comprehensive measures to adapt the regulatory framework to ensure that financial markets can continue to function. Our COVID-19 Regulatory Radar helps you navigate the complexities of policy responses and keep up with the rapidly changing regulatory landscape.
The answer to these questions: our COVID-19 Regulatory Radar closely monitors regulatory changes in the financial markets on a global scale and summarises the key aspects and impact.
Managing disruption to people and productivity from the Coronavirus.
The impact of COVID-19, as well as current and preventative measures taken against it are a major workforce concern of businesses around the world today. Many organisations are facing different challenges, including:
Please find more information and your direct contact person, for each specific topic, via the section buttons below.
COVID-19 significantly affects the established employment processes and routines. It’s a major challenge to quickly adapt to this extraordinary situation to the best benefit of the company and its workforce, all in compliance with the Swiss employment law framework.
How do I keep my workforce and still be able to reduce salary costs despite less workload?
Short-time work compensation: We can guide you through the entire procedure of submitting a request for short-time work, and all related legal matters.
We can support you in all employment-related issues, including:
Many organisations do not have contingency plans in place if key roles become vacant. Potential replacement(s) have not been identified or may not have the skills, experience or training that is required for the role.
Many organisations don’t have contingency plans in place in case key roles become vacant. Potential replacement(s) have not been identified or may lack the required skills, experience or training for the role.
Some organisations do not have the policies, processes and tools to drive and support a productive, motivated and healthy remote workforce. Working from home and leading virtual teams is not just about having the right technology in place, it requires a certain mindset, behaviours and training.
Companies need to proactively review their workforce costs (e.g. overtime, annual leave, short time, salary reduction).
In the mid-term, they may need to carry out more significant workforce cost reductions: downsizing, targeted workforce reduction or generic workforce cost reduction.
Communication is crucial during the COVID-19 crisis. It is absolutely vital that you communicate with your employees promptly and in an appropriate manner. With Beekeeper’s app, you are always in contact with all your employees, even those on the front line and without a fixed workplace.
Thanks to the Beekeepers app, you are able to manage the crisis period better and more securely thanks to:
For employees involved in cross-border activities – whether business travel, secondment, cross-border commuters, local transfers, or regular activities in multiple states – it is necessary to clarify whether the measures taken by their employers and regulatory authorities in response to COVID-19 may put the company as well as its employees unintentionally at risk in terms of their social security, immigration, and/or tax positions.
The global pandemic is creating an unprecedented recession, causing both business and budget uncertainty. Distance from their offices and teams has hampered the capacity and effectiveness of in-house staff unaccustomed to remote work. With supplemental legal talent on a full- or part-time basis we can flexibly expand our clients’ Legal & Compliance teams or transfer clients’ headcounts to our talent platform.
The authorities were quick to put in place various provisions in light of the spreading of the COVID-19 pandemic. We are happy to help you implement issues relating to employment law.
Payroll is our area of expertise, covering wage types and calculations like time recording as well as the creation and filing of salary statements. This includes all aspects of short-time work compensation, the types of compensation for loss of earnings and other effects in payroll accounting.
Where clients are reliant on supply chains in affected areas, rapidly depleting stock levels are becoming a significant risk and clients are working through strategies for alternative sourcing. In certain cases, clients are showing signs of distress and stakeholders (e.g. lenders) are concerned about the future viability of the business. We are discussing different potential scenarios and what these mean for their operations, for example, as cases of viral transmission emerge in different territories.
“Navigating Your Business Through Turbulent Times” - a practical guide to continue supply chain and operations in the face of the COVID-19 crisis
Consumer buying behaviour, driven by media news and governmental conditions, is very hard to predict. Many clients face significant changes in market demand.
Supply interruptions due to factories with workforce- and/or supply-shortages, supplier bankruptcies, delayed processing at borders drive unreliable supply chains. Additionally, clients face workforce capacity challenges and the need to quickly adopt new ways of working.
The externally-driven challenges require immediate action in adjusting the demand/supply agreements. Business processes, as well as master data, set in place to control a “business-as-usual” environment, should reflect the needs of the current, radically different environment.
Businesses face challenging times as a result of the governmental decisions to lock down public life. While some companies can at least continue their operations at a reduced capacity, others are fighting to keep their businesses running and will end up with a vast lack of cash due to revenue losses.
At the end of March, the Federal Council announced it would support affected companies with a package of measures. Among others, the Swiss Federal Tax Administration and the Federal Customs Administration have granted simplifications regarding the filing of returns and declarations, payment settlement and operational customs clearing handling for specific types of goods and professional groups.
Affected companies should now evaluate their opportunities to benefit from these measures included in the support package and check the following:
Julie Fitzgerald Wieland
Partner and Leader Finance Transformation and Growth & Markets, PwC Switzerland
Tel: +41 58 792 26 80
Leiter Familienunternehmen und KMU, Mitglied der Geschäftsleitung, PwC Switzerland
Tel: +41 58 792 63 63