Challenges for a healthy and prosperous economy
Costs and time: a valuable balance
Companies must wisely decide how to allocate their resources – time, money and staff – to the various tasks in their business.
Faced with a given task, companies often find themselves in several situations :
1) They put the task aside due to lack of financial resources or time. This can have serious consequences for the operations and development of the company, which then accumulates delays or sees its growth slowed down.
2) They carry out the task internally to limit costs, which would be much higher if the task were outsourced.. However, companies have to dedicate staff and a significant amount of time to this task, which may hinder other activities
3) They entrust the task to an external service as they do not have the time to do it themselves. Consequently, they accept to spend large amounts of money. Furthermore, they face long delays in regards to the completion of the task, since external services work with several clients, some of whom are higher-priority than others.
Finding the right balance between costs and time spent on a task is therefore a real challenge for companies.
5 recurring economic challenges
Every company faces recurring challenges.
Even Apple, whether it has great expertise, develops the best products and maintains an excellent reputation, cannot remain number one in its field without responding effectively to these challenges.
Accurate knowledge of the financial situation of your company allows the assessment of its profitability and the points to be improved in its strategy. Accordingly, accounting errors can lead to poor decisions being made as a result of a flawed analysis. Furthermore, an erroneous balance sheet and financial results can lead to serious consequences, including bankruptcy.
Ensuring that reliable figures are available is therefore one of the challenges for a healthy economy.
Companies must comply with various tax requirements, including value added tax (VAT) and social security contributions (AHV, IV, unemployment insurance, etc.)
VAT must be correctly applied to each transaction and the VAT return must be accurately prepared, as any error may lead to significant financial penalties.
Similarly, social security contributions must be planned and calculated accurately. From compensation for damages to prosecution, there are great risks involved if these obligations are not met, whether deliberately or through negligence.
A healthy economy therefore depends in part on the proper management of these requirements.
Late payments have a direct impact on cash flow and can cause all sorts of problems for companies that have to collect these sums or risk losing business.
Collection procedures are time-consuming and labour-intensive, making limiting late payments a real challenge for companies.
Poor division of labour within the company leads to a real waste of resources. Refusing to delegate part of the responsibilities, poorly defining the work tasks or assigning them to the wrong person… different aspects that affect the efficiency of work teams and therefore productivity.
Precise planning of the workload and tasks to be performed and their allocation to the right people is essential for a successful economy.
The economic development of a company is largely based on the development of its customer base. The loss of customers is not without consequences and the lack of customers is the death knell of business.
In the face of stiff competition in the market, acquiring new customers and retaining existing ones is another challenge facing companies.