With the economy still limping along, maybe some businesses could use some advice on how best to weather the storm. Well, Alan Litwin has some thoughts. Managing director at Providence-based Kahn, Litwin, Renza & Co. Ltd., a CPA firm and business consultant, Litwin answered a few questions about how KLR is handling the recessionary pressures and how it advising some of its clients, and it goes beyond the financial statements.

PBN: What do you think should a priority for businesses in order to survive the down economy?

LITWIN: Concentrate on existing clients/customers. It is imperative that a business take good care of existing customers/clients. It is always easier to maintain an existing customer relationship than to find a new customer. At KLR, we work hard to communicate with our clients to help them manage their businesses and deal with their problems in creative and insightful ways. We want our clients to know that we are trusted advisers to them in good times and bad.

PBN: I assume the same concentration should be applied to retaining employees.

LITWIN: Many employees read the headlines and are concerned about the stability of their employers. It is imperative to assure employees that the company is sound and dissuade them from looking at other employment opportunities. They also must understand their roles and responsibilities in ensuring that the business succeeds. We have an open communication philosophy and advise our entire firm about everything that is going on at the firm including financial information and the firm strategies to deal with a challenging economy.

PBN: Any other critical actions for a company in survival mode?

LITWIN: Reducing expenses. It is critical to review all expenses and processes to see if there is an opportunity to reduce costs on a temporary and/or permanent basis. Last year, at KLR we reviewed all our purchasing requirements and ascertained whether we were using the most cost-effective products. Once we evaluated our needs, we then discussed those needs with our vendors to make sure that the cost was in line with our expectations. If not, we investigated alternative vendors. In addition, we are constantly reviewing our staffing requirements to assure that we are delivering the best service to our clients in the most cost-effective manner.

PBN: Should companies start thinking about what they’re going to do when the economy turns around?

LITWIN: Perhaps the most important thing for a strong business to do is to put itself in position to take advantage of a rebound in the economy. Whether that is new product development, new lines of business or marketing, a prudent expenditure in a difficult economy can prove to very profitable once the economy begins to recover. We have reviewed all our services and eliminated those that we did not deem to be warranted and are expanding and developing new products and services that we think will be well received by the market as the economy rebounds.

PBN: How essential is communication in tough times like these?

LITWIN: In an era of instant news and rumors, it is important for businesses to communicate with all their constituents and convey their messages clearly. Whether it is employees, customers, vendors or strategic partners, an open communication environment will help the business manage and prosper in difficult times. We have always enjoyed open communication with our constituents. We have monthly staff meetings with our entire staff to discuss the status of the firm and strategic objectives that we are pursuing. We also communicate frequently with our strategic partners and vendors so that they can assist in providing the highest level of service to our clients.