Tips for small business navigate the business impacts of COVID-19
Bring your financial statements up-to-date and keep them up to date – you’ll need access to the most up-to-date information on the financial position of your business.
Prepare a cash flow forecast - cash flow forecasts should give you forewarning of any cash flow problems so you can act early to address them. Your accounting software should be able to assist you in preparing a cash flow forecast – if not, speak to us for help.
Determine critical indicators which will quickly tell you how your business is tracking. They are the value of daily sales, cash balance, debtors’ balance and cost of orders and bookings.
Determine the financial health of your business – you gain a significant amount of information on the health of your finances by analysing your financial statements through financial ratios.
Identify products or services in high demand - Focus any promotional activity on those items:
Do not discount top demand items.
Package low demand items with high demand items to get those items out of the door to make room for these high demand items.
Reduce stock orders, especially the items in low demand.