Milsted Langdon on why recovery begins long before the crisis

Milsted Langdon has published a thoughtful note on what separates the businesses that recover from difficulty from those that do not: the quality of their numbers before the problem appears.

The firm observes that strain usually shows itself months ahead, in slower cash collection, thinner margins and growing reliance on short-term borrowing, and that regular bookkeeping, management accounts and cash flow forecasting give a business time to act while options remain.

A calm, practical piece from a member that knows the territory well.