4 minutes
Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to evolve rapidly. As the pandemic rises both in severity and span, companies also face conditions linked to a general economic downturn. This effect is not limited to the uncertainty and deterioration of financial markets worsening credit, liquidity concerns, further increases in government interference, increased unemployment, widespread declines in consumer discretionary spending, increased inventory levels, decreases in production as a result of reduced demand, layoffs and furloughs, and other restructuring activities. Continuing these conditions could lead to an even more massive economic downturn which
could have a significant adverse effect on the financial results of an individual.
Helping Hand of Accountants
These days, businesses need to work more efficiently to counter the COVID-19 situation. Look out for how accounting services can help you during corona times.
1. Assess the Situation
Firstly, accountants analyse the current situation in order to evaluate the starting point. Despite the unparalleled present economic climate, there are many places where business leaders are unprepared. The COVID-19 pandemic's impact is unclear, but the economic consequences will likely extend over the next six months or longer.
2. Taking Care of the Paperwork
Once you've got a plan, your accountant will help you make it happen. Applying for relief usually includes submitting financial information and filing paperwork. Your accountant can help you gather information on financial statements and sales figures, and ensure that it is exact and administrative details can be managed, so you can focus on business issues that can be solved only by you.
3. Manage Capital Wisely
After the emergency cash hits your account, accountants are valuable partners in helping you remain afloat. They can
- help to reduce costs and spot opportunities for growth by keeping your books updated
- Maximize the cash flow through the detection of productive and unprofitable clients
- Define arrangements you may like to renegotiate (like leases and loans)
- Highlight ways to reduce the cost of your stock.
4. Modeling of Revenue
Accountants can help define how much financial support the business needs by forecasting the cash flow and modeling the revenue. After that, they can accurately determine what relief programs or grants the company is eligible for, or which options might make the most sense given the Covid19 situation. For example, some loans have higher interest rates than others. Particular investments are waived off if used to maintain payroll. Aid is mostly available for specific businesses (like healthcare, food manufacturing, or logistics). With a smart accountant, the entrepreneur can make a strategic relief plan tailored to the business goals and the government resources available.
5. Educate Yourself on all Government Aid Options
Based on a research study, approximately 42 percent of surveyed participants said that they thought their accountant did not find it necessary to monitor their company. Accountants help you to get updated with information. As an example, there are several financial aid options currently being offered by the UAE government. Accountants fill the gap between your knowledge and the government aid options available. Accountants also tell you about the new self-assessment and VAT deadlines and other COVID-19 related assistance.
6. Give Proactive Advice
Accountants advise you on what you should be doing now to protect your business, with tips on things like how costs can be reduced, put off expenses, and minimize tax installments. They could have had to remove employees, temporarily close down stores or entirely close down stores, receiving little to no money. Explain techniques for minimizing the losses.
7. Share Regular Information
Accountants monitor developments in financial and government regulations and share the details as soon as you have them. Interpret changes for you so that you understand the impact. Make a point of passing along useful articles or action plans about managing through the outbreak.
8. Admit When You Don't Know Something
If you are unaware of the answer to a problem, that's okay. There's never been a better time for transparency. Accountants can help you to solve your problems, and they give you solutions based on the available information.
Why JAXA?
Finance experts are crucial stakeholders in the development and implementation of a recovery plan. Worldwide companies can be especially vulnerable to the outbreak of COVID-19. Use the management accounting tools either by hiring an accountant or by outsourcing accounting services to face these new challenges of getting quality advice and knowledge. Specialists at JAXA have years of practice in this field and will offer custom solutions to the problems of your business. For additional tips, contact us today. We'd be glad to assist you.
