How A Chartered Accountant Can Help You Deal With A Crisis

 

While every business needs to have a backup plan in place to account for various challenges, some things are just unpredictable and unprecedented – as we've seen over the last year.

Many businesses have been impacted by the formidable and ongoing challenges brought on by COVID-19.

Whether business ground to an unexpected halt, you had to pivot your core strategies, or you had to find a way to operate in a new world of business, lockdown forced change on all business owners.

During times like this, you need to draw on the expertise and support of those in your circle, such as your chartered accountant.

Here's how they can help you and your business deal with a crisis.

 

How A Chartered Accountant Can Help You Deal With A Crisis

Know Where You Stand

Before you can make any decisions on the future of your business, you need to know exactly where you stand at any given moment – particularly during a crisis.

Instead of spending hours poring over the books yourself, take the pressure off and let your accountant work out the current snapshot of your finances.

With their experience, they will quickly be able to identify the areas where you can cut back to save money, and help you create a strategic plan tailored to your business with the resources available.

 

Get Advice On Financial Relief

Thankfully, there are options available when it comes to financial support. The government released a variety of ways to help struggling businesses – from helping you pay your employees to providing loans, subsidies, or tax breaks.

The government are not the only ones providing options for finance. There are other companies out there who can provide support on the cashflow front. However, the details of such support can be confusing, particularly if you are feeling overwhelmed trying to stay afloat.

Your chartered accountant will be up-to-date on the options available, and armed with your financial data, can advise on the appropriate strategies for your business. They will help you cut through the confusing small print so you can quickly get the help you are entitled to.

 

Let Your Chartered Accountant Sort Your Paperwork

Now that you have a plan in place to keep your business running, you will likely need to go through the process of applying for relief from the government or securing loans. For this, you will need to provide up to date reports and figures.

A chartered accountant can save you from spending your precious time navigating your financial software and compiling reports. They can do it in a fraction of the time and ensure all the data is accurate and relevant, so you can focus on the things you do best for your business.

 

Know Where To Cut Costs

There's nothing like an expert eye to help you lower costs and maximise profits during a crisis. (And at all the other times in the year also!)

Your accountant will be able to scan your financial reports and make suggestions on how to make the most of your assets and reduce expenses during tough times.

They can hone in on the areas of your business that aren't showing a good return or are causing you to lose money. Armed with that information, you can look for ways to increase efficiencies, or remove certain aspects of the business.

 

Respond Quickly

In some crises, there's no time to sit down and pore over the books for a week or two before making a decision. The financial climate can change rapidly, and business owners need to respond and adapt quickly.

Accountants have their finger on the pulse of the rapidly-changing financial landscape – that's their job. Therefore, they will be able to help you make fast – but not rash – decisions to stay afloat.

 

Plan For The Worst But Hope For The Best

When your business is at stake, it can be tempting to take drastic measures to save it, or even call it quits too early! Consulting with your accountant will help you avoid making rash decisions that might come back to bite you in the long run.

As well as responding promptly to the current crisis, you need to keep one eye on the long-term success of your business. Your chartered accountant will know precisely how to balance the short and long term decisions to make sure you not only survive the next few months, but have a healthy future ahead too.

 

Your chartered accountant is there for your business through times of feast and famine, but they are particularly vital in hard times. Having someone you trust that knows your business well gives you precious peace of mind in stressful times, and can help your business survive to see another year.

If you would like an expert chartered accountant on your team, then reach out to us here at Strive Accounting. We would love to help you navigate the smooth and choppy waters of business.