Now that we have vaccines against COVID-19, the dust is slowly settling down. Businesses are starting to re-open and many are implementing strategies to recover from this unprecedented pandemic. Uncertainties are still present and the top question most business owners have right now is, how will I recover from this?
To help you, here are some tips below to financially prepare your business for the new normal situation:
Revisit and Adjust Budgets
The first thing you need to do for your business to prepare it for post-pandemic life is to recalibrate your budget. A lot of things have changed and there are factors that had been affected that directly impact your budgeting strategy. Take note of all these changes and adjust together with it.
Take in this ‘new normal’ phase as a restart point for your business. You don’t have to throw your pre-pandemic plans into the trash, all you have to do is adapt and adjust strategies to better fit the post-pandemic situation.
Adjust Debt Payoff Plan
Many business owners who had been greatly affected by the pandemic are now trying to pick themselves up to go back on track with their finances. While paying debt should be one of your top priorities, you should take some time to check all accounts for the most recent balances and from there, re-adjust your debt payoff plan based on your current circumstances.
If your main goal right now is to catch up with expenses to keep your business running, focus on that. Just make sure that you know all the policies and consequences of your decisions before doing it. Once you’re at pace again see if you can start with paying off debts with huge interests, if not, tackle the small debts and work your way up. Remember, there is no right or wrong way to approach your plan, it all depends on your circumstance.
Monitor Your Credit Score Regularly
Unfortunately, there has been a huge surge in personal data being compromised due to the pandemic. Cybercriminals are getting busier because more and more data are being made available and accessible online. To protect yourself and your credit score, be sure to obtain a copy of your credit report from your chosen bureau and review them regularly.
Keep in mind that a great and clean credit score is your way to great deals on loans, credit cards, insurance, etc. This is a very important factor in your business so you have to make sure there are no discrepancies about it. During your review, if there’s anything that’s false, submit a report and be sure to have any supporting documentation that can serve as evidence to support your claim.
Project and Prepare
This pandemic has shined a light on the areas in our lives that can use some more time, intention and attention, and it is safe to say that one of these things is preparedness for the unexpected. It is true that we can’t be ready for everything, but we should always have a game plan ready in case something like this ever happens again.
One of the things you can do to have your business prepared is to always have a cash flow forecast. This projection can serve as your lens to track your cash flow over a period of time in the future which can assist in making informed decisions.
FAS focuses on providing financial insights that can help you and your business. If you need assistance with bookkeeping, business and/or individual income tax return preparation or cross-border taxes, feel free to contact us! Reach us at firstname.lastname@example.org or at 713-855-8035.