COVID-19 has negatively impacted many different industries. Some businesses have thrived through the pandemic and others have weakened. However, the pandemic has made one thing clear, your business accounting team/accounting partner / outsourced accounting firm/payroll partner is your hero at the moment. Accountants and payroll specialists are giving you support. And also knowledge on how to get through the crisis, assisting you with your cash flow, your payroll legislation, staffing challenges. And the constant threat of further lockdowns and business shutdowns.
Even though Australian COVID-19 numbers are low, the future is still looking bleak. Borders are closed to international visitors, and consumers are watching every dollar. On the surface, we may think that things are normalising. Offices are reopening, shop floors are filling up, people are out and about. However, below the surface there is chaos. And the recovery from this COVID chaos is where accountants and payroll departments are going to work harder than ever to help your business recover to its full potential. For your business, recovering to its full potential may mean that you need to broaden your service offerings. Or just simply take a look at your current processes and revenue streams and streamline where you can.
Recovery is going to look very different for every business. And will present new challenges for business owners, leaders and teams. Expectations are unknown until you assess the situation you are in. We are here to help you look at what you can do to start your business on its recovery plan, and how your payroll team/partner is a key function for you to focus on.
Starting your recovery
Every business wants to be busy – and see their business growing. But there is no point being “busy” if your pipeline of work is not earning you the right profit margin, generating revenue, and raising your profit. Now that 2021 is approaching, make time to review, assess, and analyse your processes and goals of your business. A good place to start is looking at outsourcing your payroll and accounting functions to specialists that can help you analyse the data and reports you have, and assist you with ideas and strategies for the future.
In addition, there is new technology on the market that can assist you and your business to have an efficient payroll and streamline your basic data entry, low-level bookkeeping, and business as usual financial admin. Your chosen accounting and payroll partner can also support you in using the technology to its full potential – retrieving payroll and business reports and data needed to have a full view of your business. There is a lot of value in allowing cloud solutions and applications along with your accounting and payroll partners do the heavy lifting for your business, while you and your teamwork on what you do best – client liaison. Your number one priority is to listen to your client’s challenges and feedback, finding the best possible solutions for them.
Increase your business profitability
Every business will have different issues, threats, and opportunities by the end of 2020. There is no one size fits all strategy that will help a business achieve post-2020 recovery. As a business leader, there is a lot of work ahead of you, and you need to be aware of what is going on in the marketplace and in your team. Your teams are your front line in the recovery phase – and your leadership needs to adapt accordingly.
To help you adapt and understand how you can start your recovery, we have outlined a few key foundational steps that can be followed to increase your business survival. Give your business a fresh start in 2021.
1. Determine your financial health
Before you even think about what you need to do for business recovery, you need to determine your financial position, your revenue streams, your profit margins and your payroll. You also need to ensure your financial statements are up to date. It will also be helpful to determine your short-term cash flow commitments.
2. Review your business’ mission
Once you have assessed your business revenue streams and have a clear understanding of where your profits are coming from, think about what areas of expertise you want to focus on and who your ideal clients are. The clearer you mission is, the easier is it for you and your financial advisors to strategise how you are going to grow and recover your business in 2021.
3. Employee care
Your employees are the key to your business success. Taking care of the wellbeing of your staff is imperative for your business success. Keeping your staff engaged and informed, understanding their expectations will allow them to feel valued and supported. Involving them in business issues and ensuring that they are aware of business strain will give you a more cohesive and practical team. In addition, if you keep on top of your payroll, you guarantee that their benefits and wages are still valid.
4. Review your customers
Our consumer behaviours and decisions are what keep businesses ticking. COVID-19 has changed the way businesses also interact with their customers. As an example, 44% of global consumers indicate they would be more likely to do grocery shopping online as a result of the pandemic. For a business to survive, it needs to understand how its customers will interact with them and adapt accordingly.
5. Update your technology
There are so many cloud technologies that can change the face on how your deal with your accounting and payroll. Your financial data, documentation, payroll and internal practices have the possibility to be managed on one single platform. This allows you to streamline your payroll and HR processes, allowing you to access client information, financial reports and data easily and remotely.
6. Review your processes
If there is a process that can be automated and performed more effectively through the use of software – then automate it. Some processes to look at can start from data entry, to payroll management. These things can be automated, giving you’re the freedom to access data outputs and high-level workflows.
7. Outsource where you can
Business recovery after COVID-19 is going to be challenging. Outsourcing some aspects of your business will allow you to focus on building your business back up. Additionally, working together and partnering with outsourcing professionals can give you the support you need to get on the road to recovery. You can start small by outsourcing all your payroll function and accounting needs. Working together with tax and financial specialists ensures you get the input and guidance on where you can focus your finances to grow your profits. In addition, outsourcing your payroll function will ensure that all the legislative knowledge required to complete payroll taxes is taken care of.
It’s going to be a tough road ahead, however, there are plenty of ways that you can ensure your business can stand out from its competitors and creates a unique business offering. By outsourcing, seeking advice, and working together with financial advisors/accountants, you can set yourself up for a successful road to recovery. Boost your confidence in your business’ road to recovery from COVID in 2021. Have a chat with us at RT Taxation accountant services for small businesses. We want you to feel confident in our financial expertise while you focus on building your business.