At a time when many UK businesses were already struggling under the weight of an unstable political and economic environment, the global Coronavirus crisis has hit like a bolt out of the blue. Many businesses suddenly find themselves scrambling to understand Government schemes, their financial position amidst a plethora of unknowns, and the best options to ensure that their companies survive the next few months.
This is not a time to go it alone; nor is it a time to underestimate the breadth of knowledge and experience a good accountant can provide. They will be able to take a step back and objectively look at the big picture to find the best way to support the longevity of your business. Then implement immediate measures which could mean the difference between survival and business failure.
Here are 10 ways your accountant can help you through the Coronavirus crisis:
1) Identify and help you to access any Government reliefs which may assist in reducing impact
2) Review and adjust your cashflow forecasts to determine what effect a reduction in sales will have on your ability to pay your suppliers and debt. Paying suppliers is important in helping to avoid a wide-spread breakdown of the financial system
3) Assess your business model to determine other possible methods of delivering good and services, such as prioritising certain products and activities, putting others on hold, activating home delivery and enabling online purchases, introducing new online applications for video conferencing, webinars etc.
4) Review your insurance policy to establish whether you may be able to claim for any financial losses
5) Discuss the possibility of temporary absence (furlough leave) for certain employees and assist with the communication thereof. Also advise on dealing with the Revenue to capitalise on any grant applications
6) Ensure that your financial information is up to date. Now, more than ever, business owners and managers must be aware of income and expenditure by keeping proper records and monitoring trends and patterns. Profit and loss accounts will help you understand how your business is progressing, as well as alert you to any new potential issues which might arise, giving you ample warning to rectify the problems or make the necessary adjustments to keep your business on track during this challenging time
7) Renegotiate payment terms with suppliers and help you to communicate with your bank should you be unable to meet any loan commitments
8) Negotiate with your debtors and discuss any potential options for your business, such as offering discounts in exchange for early payment
9) Keep you informed on a regular basis of any relevant announcements from Government regarding developments which could benefit you and your business
10) If all else fails, your adviser will work with you to consider the insolvency options, as it may be possible to rescue a viable business by putting in place a debt reorganisation plan, rather than be forced into liquidation
Our specialist accountants, or business advisers, at Beavis Morgan are currently working with clients to provide dedicated advice relating to the Coronavirus crisis, helping them understand their options, navigate the Government support schemes available, implement the appropriate measures, and plan for the short-term whilst considering their longer term needs.
We believe that, with the cause of this downturn being so obvious, we may well see a rapid rebound if and when a vaccine or alternative solution is found. We are therefore working hard to make sure that our clients not only survive this crisis, but are well prepared to emerge in the strongest position.
Talk to us about how we can help you and your business. Email info@beavismorgan.com.