The new coronavirus and the disease it causes—COVID-19—continue to wreak havoc on worldwide health and business. As some countries begin to see a leveling off of new coronavirus cases, attention is being turned to the economic downfall of the pandemic.
Much of the United States, Canada, Europe, Great Britain, and other countries have been shut down during the coronavirus crises. Large businesses such as Apple, Amazon, and more, may be able to withstand the economic pressures of the day without much trouble. Yes, they may see a reduction in revenue, but that will likely not make or break their company. The same is not true for small businesses. How many small businesses are there in the United States?
Small businesses all over the world have been disproportionately affected by the COVID-19 economic downturn. Businesses such as cafes, pubs, bars, restaurants, cinemas, gyms, theaters, and other leisure centers were ordered closed in London on March 20, 2020. They have yet to reopen. Considering that many of these businesses are considered small businesses, the loss of revenue can be devastating.
Advice from accountants to help get through the COVID-19 economic recession
The situation appears bleak for small businesses in London and elsewhere. But, there are a few things you can do to help weather the COVID-19 economic recession.
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Know your break-even point.
Now maybe the time to do a cash flow forecast with an online accountant. With less cash flowing in, you must understand your expenses. A cash flow forecast can also indicate your break-even point.
A cash flow forecast, and break-even point analysis are important for telling you exactly where your business stands. This information can help you determine the steps you need to take to weather the COVID-19 financial crises.
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Understand the options for help.
Many governments are now offering help to businesses in all sectors. Small businesses, especially, are the target of loan and bailout programs in the U.S., U.K., and Canada. In the U.K. specifically, you should consider the Coronavirus Business Interruption Loan Scheme (CBILS) or other similar programs.
The U.K. government is currently offering support for business. You can read a more in-depth summary of the small business grants on this London accountants blog.
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Be proactive.
Likely, you are already feeling the effects of the COVID-19 pandemic. Unfortunately, we may not be “back to normal” any time soon. Without a vaccine, there is always a chance for the virus to grow again and cause more economic shutdowns.
The reality of the COVID-19 situation calls for proactive management of your small business. Gather all the information you need to keep your business afloat now. Being proactive means working closely with your business advisor and accountant to create a plan for your small business. That may include reducing staff and other overhead or beginning to apply for relief and grants. Don’t wait until you are about to close your doors for good to begin researching options.
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Be flexible.
The most successful small businesses during this time will be the ones who are flexible. That may mean moving to takeout-only service for restaurants or allowing all employees to work from home. Many businesses around the globe are already making these changes. But the main point here is the importance of flexibility.
Work with an online accountant to streamline your business plan. The better your company is at pivoting with a changing market, the stronger it will be in the long run.
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Employ a great online accountant.
One of the best ways to ensure your small business weather this economic recession is to employ an online accountant and business advisor. You may not be able to go into an office, but there are many wonderful online companies. They are here to provide you and your small business advice and help to get through this tough time, such as indicating whether or not it is a good time for you to invest.
When searching for a good online accountant, look for a few things. The company you choose should be used to working online. They must be available to answer your questions any day or time. They should also be grounded in your local communities and be familiar with your government’s relief programs. For example, if your small business is located in London, you need to find a good online accountant from London, or at least the U.K.
Conclusion
The new coronavirus has succeeded in creating a highly stressful environment. Small business owners have been especially hard-hit by the economic repercussions of the virus. Don’t let COVID-19 put you out of business. Follow the tips above and speak with a good online accountant. If you do this, you will have all of the information you need to come back from this economic crisis stronger than ever.