Mazars in Thailand advises entrepreneurs to perform a business check up during COVID-19

Mazars advises business owners to perform a business check-up before making any restructuring plans to survive through the COVID-19 crisis. Mazars is ready to provide legal, tax, accounting, audit, and finance advisory services to businesses affected by COVID-19 and can perform a business check-up before giving advice on how a company should adjust its business plans and decide to continue with, suspend, or shut down its business.

Mr.Chatchawat Kriengsuntikul, one of the partners of Mazars in Thailand, noted that COVID-19, which began spreading in early 2020, has forced many small and medium-sized enterprises to close. Meanwhile, other businesses are struggling and are unsure whether they should continue trying to operate, suspend the business, or shut it down completely. Due to Mazars’ experience providing advice to businesses, it can analyse all relevant factors to make a sound assessment and find the proper solution.

Mazars views cashflow and liquidity as the most important factors that allow businesses to continue operating. Some businesses which have been impacted directly by the pandemic are suffering losses or revenue shrinkage, leading to insufficient cashflow. In addition, several government measures that have been taken to control the spread of COVID-19 have affected businesses in various ways. Some have had to stop doing business entirely, some can run their businesses only partially, while others have been able to continue operating as usual, adjusting some processes to comply with the restrictive regulations. This has resulted in cashflow and liquidity shortages due to a lack of income, decreasing revenue, and increasing costs of operations.

Many businesses need to find additional working capital in order to continue, either by injecting more capital or by finding loans from various sources. Furthermore, in order to maintain liquidity, they have had to cut expenses by laying off staff, negotiating with suppliers and creditors, as well as asking for reductions in rental fees, lower prices for products and services, debt suspension, lower interest rates, and a slowdown in the repayment of principal and interest. Some may have to stop repaying debts, negotiate the various terms, and enter into rehabilitation or take legal action to enter into bankruptcy.

For more information please go to : https://www.mazars.co.th/Home/Insights/Mazars-in-the-press/Business-check-up-during-COVID-19