Many small businesses have altered business plans and implemented cost-cutting measures to keep their doors open during the COVID-19 pandemic. During this unprecedented time, business owners have quickly realized the importance of their finance and accounting operations.
However, these operations are often overlooked during a business’ recovery and growth phases. By implementing and maintaining proper accounting processes and procedures, businesses can scale more effectively and be more prepared if tough times happen again.
Here are the key financial pieces that can help your business recover from the impacts of COVID-19:
Clean Financial Statements
Not only do business owners need accurate financials to make business decisions, lenders and investors need to see clean, accurate books in order to provide capital to a business. As your business ramps back up and you develop growth plans, outside capital may be needed to support your vision. Now is the perfect time to hire an advisor who can ensure your books are accurate.
After the last few months, no one knows the importance of cash like small business owners. If your business does not already have a cash forecast in place, you may be at risk of not having enough funds when debts become due or inventory needs to be purchased. This analytical tool is essential to developing a scalable cost structure and having enough cash at all times.
Similar to a cash forecast, a dynamic, breakeven analysis is a great tool for devising business plans. This analysis gives business owners the ability to change inputs such as units sold, unit price, direct costs, and operating costs in order to test a product’s or a service’s feasibility.
Improved Financial Reporting
The more visibility you have into your company’s financials, the easier it is to create business plans, make decisions, and pivot when downturns happen. Having the ability to produce accurate, dynamic financial reports is critical to assess your business in real-time.
If your company needs guidance or additional financial support to execute your recovery plans, please contact us to schedule a free consultation.