COVID-19 or Coronavirus, is a pandemic that has jolted the world economy, health industry, as well as most of the businesses based across the continents. To control the spread of this deadly virus, different governments are taking all sorts of measures to safeguard both the health of its citizens at the same time protecting the economy/businesses by giving stimulus in one way or the other as a lot of businesses have taken a hit due to fall in demand of products and services offered by them. Governments have imposed lockdowns, which is done to ensure that the local population stays at home and save themselves from getting affected by this deadly virus.
It would not be wrong if this pandemic would be called one of the darkest phases of this century. While you stay safe and at home, here are some tips to prepare your business for this virus:
- Stay Up-to-date with the Financial Statements – It is important that as a business owner, you are prepared for unfavorable circumstances that may surface out of the blue. Hence, you must keep your financial statements updated and keep updating them more frequently than usual so that you know at all times where you and your business stand financially.
- Estimate the financial impact and also devise a strategy to combat the situation – COVID-19 would affect the business in different spheres. You can still be in business if you have online presence. The situation of social distancing and self-isolation would mean lack of staff, unless you have the provision of work from home. Financially, businesses that are low on cash reserves are sure to be impacted. Businesses must find ways to mitigate the effects by being creative and thinking out of the box.
- Financial health check-up and re-designing the budget – Financial check-up will help the business decide how to navigate through the quarantine situation. This Involves analyzing the financial statements, re-doing the budget, and making sure your business is prepared for the crisis. Work with your accountant, include the possible risks and impacts COVID-19 will have on your business and keep a contingency plan ready. An online accounting service can help you obtain an overall financial checkup of your business without having to physically visit or meet an accountant.
- Improve Cash Flow by going online – After you have your budget re-done completely you will have a clear picture of the future cash flow crunch. Act immediately to improve the situation or at least stop it from worsening. Manage stocks, debtors, creditors, expenses, asset, as well as make the necessary changes to the existing business models. The recent market scenario is suggesting to go digital. To stay in the game, businesses are now selling online. This has reduced the need for physical contact to a great extent.
- Talk to the key Suppliers – It is important for your business to stay in touch with the suppliers. For locations that are hit hard by COVID-19, the suppliers might not be available at all. You must try and find alternate suppliers for your business to keep running.
- Consider Employees those are an asset – Businesses are rolling out the provision of work from home for employees. In such cases, it is important that businesses extend essential equipment like a laptop, calling headphones to the task force. Outsourcing can prove a boon during this time if your in-house task force is not compatible enough to deliver required results during this time of crisis.
- Get a Reality Check on Your Business – Use this opportunity to reflect upon the business operations and utilize this time to make the necessary changes to the business model. Ask some basic questions like, whether you are prepared to bear the consequences of the crisis? Is the business financially equipped? Can the business still run and fetch returns?
- Seek a professional help – If you wish to devise a contingency plan owing to the crisis situation that has affected every sphere of work, you can get in touch with an expert in finances and accounting. Small business accounting services are readily available online for business owners.
Whiz Consulting offers finance and accounting outsourcing services to help businesses better manage their books, finances, as well as taxes. Our experts work remotely for you and handled the outsourced accounting services with adept capability, this means, you wouldn’t have to physically meet us. We understand the importance of managing business funds during this time of social distancing and complete lockdown. We can help you devise strategy to ensure optimal cash flow for your business.