The coronavirus pandemic has left no stone unturned and has completely shifted the way we view business and life—including accounting. In fact, the COVID-19 pandemic has resulted in one of the most rapid changes to the economic environment the world has ever experienced. For instance, during the week that ended on August 8, a stupefying 963,000 people submitted a claim for unemployment insurance, which continued a devastating trend in the market.
To help you navigate your way through the pandemic, the experts at MB Group have outlined a few strategic accounting steps and best practices businesses can take. Let's take a closer look at some of our key pandemic accounting tips for small businesses. And if you're looking to get more information or tailored assistance, don't hesitate to reach out to the team at MB Group.
One key accounting tip to help your business survive COVID-19 is to conserve as much cash as possible. To find those possible sources of cash, simply review your cash flow report. Are you able to delay a planned capital expenditure until later? Are you currently paying for subscriptions that you can temporarily live without? You can also establish spending boundaries to help support your profitability during uncertain times. However, to truly be able to scale back spending and preserve cash, you need to make sure your books are in order and up to date.
You can't make sound business decisions unless you have a solid picture of your current cash flow. As a business owner, every decision you make should be based on your accounting and customer data. If you have a finance manager on staff, this professional should be intimately involved in all of the decisions you make during the pandemic to ensure you're not being overly risky. On the other hand, they can help determine if you're playing it too close to your chest and may be missing out on opportunity directly in front of you.
However, if you're like most businesses, you don't have a finance manager or an in-house accountant. In these instances, you can turn to the experts at MB Group to provide you with unbiased, expert guidance and advice to help you navigate the best path forward through the pandemic.
Although it may seem like it's more trouble than it's worth, the value of custom reporting can hardly ever be overstated. And this value is exponentially amplified during troubling times like these. With custom reporting, you can access specialized reports and pull exclusive data unique to your business.
However, you shouldn't waste valuable time manually aggregating data from several sources into a spreadsheet. Instead, you should have the ability to gain this insight through your current accounting software. In the event you don't have the capability or functionality to access custom reporting, it may behoove you to speak to a CPA to learn what you may be missing.
If your business has taken a hit in revenue because of the pandemic, you aren't alone. One solution is to look to diversify your customers as well as your revenue streams. Consider how you can market your products or services to a larger audience. On the other hand, you may be able to introduce more pandemic-based products and services.
Many savvy businesses have transitioned their model to support the immediate needs of people living through the pandemic. In either case, the goal is to create additional or alternative revenue streams to reduce your reliance on a single source.
Simply put, it's tough for everyone, especially small business owners. And while your accounting process may not be top of mind, you can strategically use accounting tips to help your business weather the storm. Fortunately, you don't have to do it alone. The team at MB Group offers support that can be tailored to your specific needs and budget.
Contact us today to learn more about our tailored pandemic services and solutions.