The COVID-19 crisis is a crucial stage where businesses need all the guidance they can get to navigate through the storm. It is advisable to go for accounting service either by hiring an accountant or else by outsourcing an accountant. Accountants can help you by joining their hands with your organization on this battlefield.
Advantages of Accounting Services
Here are some of the uses on how Accounting services help your business during these critical days.
1.Inform Yourself of All Aid Options
Accountants will go through all financial and other forms of aid provided by national governments. This would support the company to be aware of the assistance that your country is offering.
2.Apply for The Available Aid
Accountants identify clients in high-risk sectors and those that would benefit most from public support measures. They help you by:
- Advising on and guiding through all your available claims available.
- Identifying options to diversify your business
- Accessing emergency financing provided by governments
3.Help with Immediate Business Survival
Accountants inform you regarding the immediate measures that might make the difference between survival and collapse. And help you to implement these, for instance, to:
- Access the reliefs on offer to maximize impact as soon as possible.
- Check the cash flow projections and change them to evaluate what impact cuts will have on your capacity to pay your suppliers and debt. Businesses should keep paying your vendors as they can help prevent a widespread breakdown of the financial system.
- Consider the business framework to determine whether the business can deliver goods or services in an alternative manner,like online or home delivery, and whether it can reduce or stop specific activities, such as travel, sales, and marketing.
- Consider the supply chains and prepare for the supply of services and goods. It may include scaling back manufacturing for some parts and stocking and reevaluating suppliers and consumers from countries severely impacted by the virus
- Check your insurance and whether they are eligible for a claim for any financial losses.
- Communicate with your staff to discuss the possibility of short term pay cuts.
- Make sure that your financials are up-to-date so that they can monitor the profitability, stock, and debtor-creditor balances. Many governments provide tax return deferment and the filing of financial records. However, the long-term impacts of these deferments are not clear. These could lead to the next bottleneck in filing these returns and the potential losses of financial and tax details.
- Renegotiate your payment terms with suppliers and help you to communicate with your bank so as to enable you to meet loan commitments.
- Negotiate with your debtors, such as offering early-payment discounts.
- Continuously monitor the situation and notify your customers of new initiatives so that they will be ready to resume trading when the restrictions are lifted.
- If all else fails, consider the options for insolvency as it might be necessary to rescue viable businesses through debt reorganization rather than being forced into full liquidation.
4.Accounting Services Help Companies to Plan for The Medium Term
Many companies are likely to be in crisis mode. An accountant will help you to avoid emergency measures that could endanger the business’s medium-term viability. They can, for example, help you to:
- Reconsider whether employee layoffs are inescapable. Cutting down on the workforce is not only having detrimental social and societal impacts but also a loss of critical skills for the company. Staff may prefer to take a temporary pay cut over redundancy. This might increase employee loyalty and enable the company to carry out operations once the restrictions are lifted.
- Start building financial reserves as soon as possible to prepare for the upcoming peak in coronavirus cases even after lifting the current restrictions.
Use the Break to Make Your Company Appealing for Investment
Sadly one of the significant drawbacks of coronavirus is slowing down of business as well as a slowing down of business investment. The World Health Organization is advising countries to change their working environment by practicing good sanitizing activities instead of complete lockdown. However, investment demand may be slow or stagnant, but the economy still has a vast amount of capital in its search for growth opportunities, both equity and debt. Once the economy turns around, a well-run company would get excellent opportunities. So now maybe a perfect time to make use of this break to tidy up your business.
- Firstly, ensure that your current practices are as effective as possible. Anyway, this action is a relevant step in maintaining profit with falling revenues.
- Second of all, clean up your past financial records now. Do not let it slip through your fingers if investment opportunities arise, because you need time to inspect your books.
- Last but not least, connect yourself with experts who understand your industry, your business, and the investment ecosystem.
Take the help of accounting services so that you can focus on the core activities of your business, which are marketing, sales, and innovation. JAXA is one of the best accounting firms in Dubai with all-round financial services such as accounting services, auditing services, along with that first tax handling procedures, VAT registration, and all type of business consultancy. Contact us now and be an early riser of success.