Businesses of all scales in Australia are having some difficulties in keeping up with the demands and shifting presence of COVID-19. With the virus still being omnipresent and the global economy being in an uncertain position, this has made it difficult for local businesses to grow and even start anew. With the Australian economy surviving and thriving through small and medium enterprises (SMEs) to supplement their larger counterparts, it is necessary to ensure their survival.
One thing that can prove to be problematic in the times of COVID-19 is the area of business finances. In times of uncertainty, budgeting and finances always have to be managed appropriately to survive as an enterprise. As brutal as it sounds, money still plays a big part in today’s world, and businesses still have to keep up with taxation, budgeting, payroll, and many other monetary aspects.
The following are tips to keep battling through COVID-19 while keeping your finances in check to soften the blow:
1. Take the Time to Update Records
If you have been putting off your records keeping, accountants in the Eastern Suburbs always recommend taking time to do a whole record update whenever possible. The records will prove to be useful, as they provide you with a clear view of your future moves with your company. Cash flow, bookkeeping, taxation, payroll, and other records must be viewed and listed down to ensure that you are making informed decisions for the future.
Using software to do accounting is the best way to do this, as it keeps everything under record online and simplifies the entire process.
2. Look at Your Business’s Financial Health Realistically
The sad reality is that COVID-19 has killed many industries, and therefore only a handful are expected to make it out alive by the time the vaccines come out. This uncertainty is why taking a look at your business’s financial health is essential, as it might make sense to liquidate assets or remove certain aspects of your operations that are eating up money.
Doing so quarterly will ensure that you have a detailed report that you can use to make decisions, which will help your business do the right things during this uncertain period. Working with accountants in the Eastern Suburbs will help you develop a realistic view of what you need to do to keep operations running for the coming months.
3. Work On Improving Cash Flow
An issue plenty are having is the area of cash flow. With revenue being less than expenditures, this spells bad news for any company, especially SMEs. Taking the time to look at where the money is coming in and where it is continuously going out will help in improving cash flow. One solution is to liquidate specific products that aren’t doing so well and focus on those that are in high demand to ensure proper allocation of resources.
It can also help to cut down on unnecessary expenses, such as specific subscriptions that are no longer useful during this pandemic period. It can also help to take a loan from external investors but ensure that accounting reports and proper planning are done before going through with any loan. Lastly, a great way to make sales nowadays is to shift online, so start investing in an eCommerce site for products-based SMEs to drive increased sales.
Staying on top of finances is essential in making it through COVID-19, as only a few industries are thriving and making money. Realistically, business in 2020 is the most difficult to get into, but those that can manage money and improve their cash flows can pull through and make it into the coming year.
RT Accounting & Taxation Services is a premium bookkeeper service in the Eastern Suburbs, NSW. The world of the pandemic does not have to be difficult for any business, which is why our accounting solutions for SMEs and other startups can be the catalyst to survival. Contact us to know more about how we can help with accounting services in Australia.