The coronavirus disease (COVID-19) outbreak is putting local and international businesses at financial risk. In a bid to decrease the risk of transmission of the disease, this health crisis forced stores and companies to work remotely and use digital platforms to serve their customers continuously, even while observing physical distancing.
While remotely working can be possible for some businesses, others with unique or unusual business natures do not have that kind of luxury. As such, this concerning health issue affects their day-to-day operations, reduces their productivity, and disrupts their supply chains, which, in turn, impacts their sales significantly.
If you are running a business amid the pandemic, you might be concerned about overcoming this health crisis and keeping your business running at the same time. To address your worries and secure your financial future, read the tips below.
1- Create a budget for emergencies
During these trying times, you need to cut down your costs and conserve your cash as much as you can more than ever. You can do this by minimizing your non-essential expenses. From these savings, set aside a budget you can use for emergencies or other times of uncertainty.
On the other hand, if you are having a hard time managing your finances and do not know where to start, then you may consider looking for reasonable bookkeeping services in Croydon. You are guaranteed to have a clearer view of your finances and learn more about your financial statements by having them do your books.
2- Consider getting a loan
If you are looking for various funding sources for refinancing, then you may consider getting a low-interest loan. By doing this, you can have higher chances of reducing your monthly payments and pay off your debt faster.
3- Talk to your lenders, vendors, and suppliers
In these trying times, businesses are more prone to face financial problems.
If you are working with lenders, vendors, or suppliers, make sure to talk to them as soon as possible if you are experiencing any financial difficulties. This way, you can discuss potential workaround solutions and other arrangements that are beneficial to both of you. They may even allow you to skip payments or have your late fees waived.
In short, the keys to working with your lenders, vendors, and suppliers effectively are by being honest and communicating with them openly about your financial situation, especially if your business is affected by COVID-19. Always exhibit professionalism by responding to their emails, messages, and phone calls.
4- Consult your accountant and tax advisor
Equip yourself with the latest information regarding payroll taxes, tax credits, paid sick leaves, direct cash payments to affected employees, and other financial assistance programs. To do this, you need to stay in touch with your tax advisor or hire a competent accountant who offers affordable accounting services.
Running a business is challenging as it is, and all the more amid this pandemic. Keep in mind that it is normal to feel overwhelmed during these trying times. Even so, you don’t have to worry as there are various ways to keep your business afloat and financially sound during this health crisis. For starters, you may consider hiring a skilled accounting team to help you deal with your finances.