While some firms in certain sectors are still growing post-Covid-19, others are battling and it shouldn’t be overlooked. Last year within 2 to 3 months, lives, organizations and economies had to battle constantly just to sustain, and there is no uncertainty that for some businesses the disturbance will proceed for quite a while. For this, bookkeepers should be prepared to show the right path.
SME Growth research for 2020 led by ScotPac stated that SMEs in Australia depended more on their offshore bookkeeping and accounting partner than any other time to get them through the pandemic, and 2021 isn’t probably going to be any different for them.
It is not the covid that harms the accounting firms and other businesses, it’s the continuous lockdowns, tax schemes and government support measures that changed the way of handling accounts of a business.
It is no lie to say that pretty much every business will be compelled to reconfigure its working models to change in accordance with what will be the new normal.
Matthew Addison (Executive director at Institute of Certified Bookkeepers) said: “This year is all about bookkeepers working closely with their clients, consolidating what evolved in each business due to COVID-19 so they can make informed decisions about recovery or rebuilding,”
How these firms will evolve post-covid depends on the initiatives and advisory roles taken by their bookkeepers.
Modify cash flow
Clients and sellers most of the time ask for more time for paying when going up against cash flow and credit difficulties.
Intently overseeing receivables and managing cash instantly can help alleviate the danger of payment defaults and delays.
You should know that both your clients and their merchants are confronting similar issues and that the correct equilibrium should be there.
Contact both for reasonable discussions and discuss your cash flows. Consider exceptional treatment for key clients and providers.
Recently, the ICB (a professional bookkeepers association), has asked its 5,000 members to learn more about Business Funding Guide, provided by the ScotPac and Australian Small Business and Family Enterprise Ombudsman (ASBFEO), so their bookkeepers are best positioned to present reasonable funding alternatives from the beginning.
Do more research
Bookkeepers should create processes to assemble data like knowledge from partners (particularly top clients), financial trends, insights from social media and industry oversights.
The financial planning and analysis (FP&A) group of your bookkeeping firm must utilize every resource to give a solid projection on both income and costs.
Organizations should assign the best and most experienced individuals to build up these financial forecasts.
“Getting funding in place, before you actually urgently need it, can be the difference between success or failure for a business. With so many SMEs coming off JobKeeper relief, bookkeepers are in a crucial position to be able to help their clients .” Mr Craig Michie (Senior executive at ScotPac) told Accountants daily.
The quick effect of Covid-19 on worldwide economies has underlined the significance of a strong and economical operational model.
It becomes the duty of a bookkeeper to understand and mitigate risks.
Security has always been a major concern but post-covid, bookkeepers have to become more aware of their security compliance.
As the government introduced multiple measures, the risk of fraudulent activities has also increased.
There is more intricacy because the extension of digitalisation causes significantly more strain on our financial framework to keep up compliance with continually evolving guidelines.
Bookkeeping experts have a key role to play in getting their clients ready for action like never before.
Outbooks is one such bookkeeping services providing agency that has been helping its clients to adapt to the changes brought by this pandemic. Get in touch with our experts to get the best advice possible.