How Small Businesses can withstand the effects of the Pandemic?
Businesses in different industries today are struggling to keep the lights on since the COVID-19 outbreak in the early months of 2020, causing a rift in the economy as national quarantines forced people to stay at home and continue work remotely.
The months-long lockdown was implemented in an effort to curb the spread of the virus, and the smaller your business, the deeper it hits. Lacking enough capital to keep the show running in this new homebound environment seems elusive, but there are various ways to survive this economic crisis.
Tip #1: Leverage The Bounce Back Loans Set By The Government
Freelancers, start-ups, and the likes are the ones suffering the most from the recent shakedown, but the UK government created a new loan schemed catering to SMEs and small businesses called the Bounce Back Loan Scheme.
It is offered to UK limited companies with a minimum loan of £2,000, while the maximum loan should be lower than the 25 per cent of the company’s turnover and £50,000.
Taking out loans may seem counterintuitive if you don’t have enough funds to pay it back, but the good news is that there are no repayments for the first twelve months as it aims to let businesses get back on their feet.
Tip #2: Review Your Cash Flow Budgets
There’s no doubt that businesses need to cut down their operating costs, so it helps to identify areas in your business that you can afford to temporarily remove from the equation. Some of the likely functions that will be out of the picture for most companies include benefits packages dedicated to travel expenses.
Not only will reviewing your budget plan help you save enough capital for your business, but it also ensures you can continue paying the necessary suppliers and vendors you need in the long run. Evaluating your supply chain can also help you see alternative options that would provide enough stock for less the price.
Tip #3: Reforecasting Budgets
Beyond taking a closer look at your supply chain, drafting a new budget plan is more crucial than ever now that you need to secure your finances to survive the drawn-out downturn and potential recession on the horizon.
Forecasting your financial future includes creating short-term and long-term projections, allowing you to have a clear overview of the measures you can do to generate cash to insulate your business.
The Bottom Line: Creating Money-Saving Solutions And Finding Support Efforts That Would Keep Your Business Afloat In A Post-Coronavirus World
Forecasting your financials may seem to look over a bleak future, but having an expert accountant by your side can help provide a fresh perspective on how to keep your revenue flowing.
Hiring a professional accountant has always been a necessity, but it’s more essential than ever before as you need an expert to manage your cash flow and help you implement financial continuity plans to sustain your business.
Why Choose Us?
Be it in applying tax-saving strategies, maintaining your cash flow, to leveraging government aid to small businesses, we can help you survive the economic downturn and thrive amidst the coronavirus outbreak.
We’re a full-service accounting firm in the UK that offers comprehensive accounting services tailored to small businesses, limited companies, freelancers, and sole traders. Get in touch with us and see what we can do to help you today!
