While some firms in certain sectors are still growing post-COVID, others are battling it hard. Last year, within 2 to 3 months, lives, organizations, and economies had to battle constantly just to sustain. There was no uncertainty that for some businesses the disturbance will proceed for quite a while. For this, bookkeepers should prepare themselves to show businesses 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 the year 2021 isn’t probably going to be any different for them.
It is not the COVID that harms accounting firms and other businesses. The continuous lockdowns, tax schemes, and government support measures also changed the way of handling accounts of a business.
It is no lie to say that pretty much every business has to reconfigure its working models to change by 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). This will help the bookkeepers to be best positioned to present reasonable funding alternatives from the beginning.
Bookkeepers will 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 utilise every resource to give a solid projection on both income and costs.
Organisations should assign the best and most experienced individuals to build up these financial projections.
Bookkeepers investigate risks
Mr Craig Michie (Senior executive at ScotPac) told Accountants daily:
“Getting funding in place, before you 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 .”
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 reduce risks.
Security has always remained a major concern. However, 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 of the extension of digitalisation. It leaves more strain on our financial framework to stay compliant with the evolving guidelines.
Bookkeepers 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 helps its clients to adapt to the changes brought by the COVID pandemic. Get in touch with our experts to get the best advice possible to steer your business.
Contact us on +61 451320102