Can accountants help SMEs stay resilient in the COVID-19 crisis? As the global pandemic (COVID-19) shows no signs of leaving the planet soon, small and medium-sized enterprises are trying hard to find a way to sustain their business growth. At this point in time, experienced and efficient accountants and bookkeepers are playing a major role in guiding small business owners to navigate through the storm.
How Accountants Can Help Your Business?
They have the magical keys to open the doors of many governments and private relief sources and give you ideas on saving money and protecting your professional team. They can also help you identify the relief programs that you qualify for and also recommend which ones to keep as a priority.
Here are the ways an accountant or bookkeeper in Mississauga can help your small business pass through difficult times.
1. Help with managing your finances
At first, they will calculate and determine the amount of financial aid you will require by estimating your cash flow and earnings. Then they will identify the programs that you are eligible for.
For instance, some loans come with higher interest rates than others, whereas some loans are forgiven due to your regularly maintained payroll and other aids are available only for particular categories of business like food manufacturing, logistics, healthcare etc. With the support of an accountant, you can choose an effective relief plan, perfectly suitable for your business objectives.
2. Handle paper works so that you can focus
Your accountant helps implement your plans for your business growth. If you are applying for relief, you need to reveal your financial details and file paperwork. Then the process moves ahead with SBA’s questions about profit and loss statements and monthly sales figures.
You can assemble important information, ensure its accuracy and handle the administrative details with the help of an accountant which will ultimately increase your focus on your business problems and the ability to solve them.
3. Use your resources wisely
When a sudden emergency situation enters your account, an accountant can play the role of a rescuer. They can
- Reduce your expenses and identify the scope of growth by keeping your financial books updated
- Improve the flow of cash by recognizing profitable and unprofitable customers
- Find out the contracts that you may wish to renegotiate
- Show you tricks to lower your inventory costs
Besides handling your financial issues, accountants can also advise you on managing your employees as well. Employees build the backbone of a small business. Dedicated and focused employees know how to retain their clients regardless of the condition of the economy. When it comes to your employees, your accountant can also give you ideas on preventing employee layoffs.
Everyone looks for support during a crisis. In the case of small businesses, an experienced accountant or bookkeeper can be that support who can help them cope with the rapidly changing landscape of government aid, get the resources they need and make sure that they are on the right side when it’s time to reconstruct. This makes it clear how accounting or bookkeeping services for small businesses can be beneficial during a crisis situation.