If you’re a business owner, chances are you’ve been overwhelmed the last few weeks trying to navigate your way through the COVID-19 crisis. Some businesses have now received a PPP or EIDL loan (See Cares Act) that will provide them with some relief and help them with payroll and some utilities over the next eight weeks. Others have not.
As many Florida businesses are now partially or fully reopened and beginning to bring in revenue again, it is tempting to keep your head down and focus only on short-term survival and ramping up your operations. It’s equally important to figure out a plan for getting through the upcoming months and positioning your company for growth once things return to normal.
Here are several tips in planning for the future of your business:
Cash Flow – Create a 13-week Cash Flow Forecast Every Week
Understanding your business’s cash flow has never been more important. Create a 13-week cash-flow forecast that is updated weekly. With a 13-week forecast, you can get an idea of what your cash flow could look like and take steps to anticipate problems before they occur.
Manage Your Expenses
As businesses are starting to ramp back up, take a closer look at your expenses and think about whether they are necessary for your business. Evaluate your payroll/staffing levels, vehicle leases, office space, credit card/bank fees, trade memberships and subscriptions.
You’ve probably started this process during the initial COVID-19 shutdown, but necessary expenses will evolve over each phase of the reopening process. Every expense that can be cut or put on hold helps the operating revenue of your business.
Stay Up to Date with your Bookkeeping
Keeping your financial records fully up to date is more critical than ever, especially if you need to apply for additional loans or other forms of assistance. If you’re juggling too many responsibilities right now to keep up with your finances, consider enlisting the help of an outsourced bookkeeping services provider.
Your bookkeeper can also provide critical financial insight that can help you fine-tune your cash flow and curb or defer expenses. And, of course, they can help you with that all-important 13-week cash forecast and expense management.
As businesses reopen, employees will be looking to their owners for guidance and security. Clear, concise communication will help keep your team motivated. In these unsettling times, showing your employees that you are confident that you can keep your doors open for the next 3-6 months will only make them more loyal. The more adaptable a company is, the more likely they are to survive.
Dawn Gerber is the Managing Director of Supporting Strategies.
Supporting Strategies provides outsourced bookkeeping services and controller services to growing businesses. Our skilled, experienced professionals use secure, best-of-breed technology and a proven process to deliver a full suite of services, including accounts payable, accounts receivable, bookkeeping, financial reporting, and payroll administration. Please feel free to contact Dawn at Supporting Strategies – Bradenton, Sarasota & Port Charlotte, FL at 941-222-0342 or firstname.lastname@example.org with any questions.