As the world wonders what the full impact of coronavirus will be, small business owners can start taking action to best shield their livelihoods from the worst of it, 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. Whether the economic impact is one month, three months or longer, it will pass. To prepare for the future, here are recommended actions to start implementing now:
Understand Your Current Financial Position
At this time, you will need to make informed decisions about your business based on your current financial position. Your ability to trade through this period, pay outstanding debts, keep employees or meet existing leasing or loan repayments will be determined by your financial position. Contact your accountant to discuss various options that may be available and make a plan as to what you need to do to minimize the impact on your business. Cash flow is critical, especially if your existing income and trade have been significantly disrupted by COVID-19.
Develop A Contingency Plan
COVID-19 would affect the business in different spheres, you can still be in business if you have an online presence. Businesses must find ways to mitigate the effects by being creative and thinking out of the box, have a plan to deal with disruptions to the supply of your products and services. Rethink your marketing strategy and how you can change customer behavior until the crisis passes. Consider ways to diversify your customer base particularly where you rely on customers from other countries most affected by the virus.
Financial Health Check-Up And Timely Reporting
The 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 and financial reporting of your business without having to physically visit or meet an accountant.
Communicate, Communicate, Communicate
Whether it is with your bank, your investors or employees now is the time to dispel panic. Let them know the thorough measures you are taking to plan and prepare. Your bank, investors, and employees are on your team and collectively rooting for you to overcome the challenges. Concise but regular communication can keep the lines open and facilitate any additional relief you may need.
Build Your Networks
This is an important time to reach out to your networks for support and advice. Being able to keep some control over your situation is good for your positive mental health. Keep communicating with your support networks and speak with other small businesses to share ideas and innovative practices.
Consider Employees Those Are An Asset
Last but not least, express care and support for your employees and their loved ones. Your actions and considerations will be remembered and stand out for years to come. If necessary, assist your employees in identifying programs that may help you weather the storm together. Whether 1 or 3 months from now, this state of emergency will pass. Your long-term prosperity and valuation are mostly dependent on actions you can take now.
Cloud Bookkeeping, Inc. 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 a strategy to ensure optimal cash flow for your business.
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Cloud Bookkeeping, Inc.
3281 E. Guasti Road, Suite 700
Ontario California 91761
Tel: +1 (909) 952-3804