Coronavirus and the economy
Coronavirus and the economy

Coronavirus and the Economy: Proactive tips for businesses

Wash your hands. Work from home. Use hand sanitizer. Self-quarantine if you’re sick. Wash your hands again. News about the global coronavirus pandemic and corresponding economic activity has many business owners feeling concerned. While no one knows what’s going to happen when all is said and done, we come at this crisis from a unique perspective. We support numerous businesses, small and large, with cloud accounting and bookkeeping services. Through our intimate knowledge of all of the associated financial data, we can offer advice to help businesses weather the storm. It all boils down to making informed, proactive decisions. Resist the temptation to make reactive moves that will hurt your business in the long run.

1. Lean on your trusted strategic advisor.

Times of crisis highlight just how critical it is to have a long-term relationship with a trusted strategic advisor. An advisor who knows your business, your cash flow, and your obligations can offer guidance and help you make decisions with the big picture in mind.

2. Look six months out.

Consider that economic impacts may take time to show up on your books. Do you have large spending decisions on the horizon? Do you need to invest in new equipment or inventory? Come up with a workable cash flow plan that you can stick to and rely on your advisor for assistance.

3. Encourage your staff to work from home if possible.

Do you have tools that will allow your teams to collaborate remotely? Is your personal home office set up in a way that would enable you to be productive working there? Be prepared for the culture shock that may come from shifting to a remote work environment.

4. Consider ways to retain and support your customers.

Depending on your industry, you may want to look at discounts or special offers that will help your customers and community get through tough times. By planning ahead, you’ll be prepared if you need to roll these out.

5. Know your numbers.

What’s coming in? What’s going out? What debts are you servicing? What assets are on your balance sheet? Keeping your finances organized is absolutely critical to staying proactive and making informed decisions. Don’t let your bookkeeping tasks fall behind.

6. Review your strategic plans and goals for the year.

Do you need to make adjustments? Were those plans made on assumptions that are no longer valid? Review your plans with your trusted strategic advisor.

7. Stay on top of news about economic relief.

While much of the news is talking about proposed measures, it’s important to be aware of relief that the states and Congress ultimately enact. Follow us on Facebook, Twitter, and/or LinkedIn, where we’ll be posting important updates as they transpire.

Above all, remember that the economy will recover over time. While it appears as though we’re entering a difficult period, don’t give up hope. Stay true to your long-term plans, adjust as needed, and seek advice from your trusted strategic advisor. Call us at any time to schedule a consultation.

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