3 Bits of Advice for 2013

3 Bits of Advaice for 2013
Image via Flickr by taylorpad212

2013 is right around the corner. With a new year come new opportunities for your personal and professional lives. The first of January is also an opportunity for companies and corporations to explore new investments, open up new markets, or seek more financing.

As 2013 approaches, John Calia, a partner at The SCA Group and a skilled management consultant has posted an article covering three points that CFOs and management should be aware of in 2013.

1) Stock Up on Cash or Keep What You Have

Calia believes that it’s a good idea for CFOs to start stockpiling cash. Many corporations are already doing so, according to many reports. There are a lot of changes that are coming in 2013, as well as the possibility for a lot of tax reform.

If major changes occur, this may affect how you should spend your corporate finances. Despite the economy slowly recovering and having good prospects for 2013, the economic environment is still full of uncertainty.

The EU is still dealing with crises in Spain, Greece, Italy, and Portugal. There is, unfortunately, unrest in the Middle East, once again. As Calia writes, “Cash is a cushion. … Cash is protection against the impact of fiscal contraction. Cash is a hedge in a near-zero interest-rate environment.”

2) Address Healthcare

The Affordable Care Act will likely face no more legislative challenges. It’s the law of the land. The majority of changes will be taking place in 2014, but many companies and insurance providers are taking steps throughout 2013 to ensure they are prepared.

No one is entirely sure if healthcare costs to corporations will increase beyond regular yearly increases. But, regardless of what happens, it’s important to be prepared and have plans in place to mitigate the costs and maximize the benefits of the new healthcare law.

Calia notes that some employers are financially helping employees to use the private exchanges to choose from a greater range of plans. This is one option you should consider moving forward, as we approach the 2014 deadline for full implementation of the law.

3) Protect Data

Making an investment in IT security now will pay off in the future. As the world becomes more globalized, connected, and mobile, cyber-attacks have been increasing. Despite what many people think, governments and spy agencies are not the only targets of hackers and data thieves. Corporations are also at risk for attacks by hackers. There is a great deal of proprietary information, individual data, and financial data that hackers can nab from unsecured or poorly-secured networks.

Make sure you have a plan of action set in the event of a data breach. Your IT department should have the resources it needs. A data breach can cripple business and even threaten the viability of your long-term sustainability.

How are you preparing for the new year?

[via CFO.com]