3 Challenges Small Businesses Are Facing Amidst COVID-19: Overcoming Them With A Reliable Accountant East Hertfordshire
The Coronavirus pandemic has hit the world worse than we had imagined when it all began. Businesses and the entire global economy are down on their knees. COVID_19 has not only affected us personally, but the fear, panic, lockdown restrictions and social distancing norms have changed our way of lives, as well as how businesses operate. Above all, businesses, especially the small ones, are under completely uncertain situations, thanks to the pandemic we are living in right now. A lot of small business owners operating across a variety of industries around the world, are extremely concerned about the future of their business. In this blog, we will discuss the 3 major challenges or obstacles faced by small businesses amidst this pandemic, and how a reliable accountant East Hertfordshire can help.
The Transforming Small Business Landscape
The pandemic has taken a huge toll not only on human lives but on almost everything around us. Amongst the most affected areas, small businesses are suffering the most, regardless of where or how they operate, the industry and other specifications of the business. That being said, amongst the number of challenges faced by small businesses, there are 3 major ones that are major concerns of most small business owners. But, at the same time, it is not just all bad news. These major challenges can be overcome with the help of the right accountant East Hertfordshire at your disposal.
The small business landscape is transforming majorly and rapidly. A lot of startups and small as well as medium-sized businesses are facing situations like:
- Permanent closure
- Temporary closure
- Changes in compensation plans
- Mass layoffs
As difficult as it is, small businesses around the globe are trying to be resilient and flexible, doing their best to adapt to the “new normal of COVID-19.” This is where an accountant in East Hertfordshire can be of great help. Let us take a look at the 3 major challenges faced by small businesses right now and how accountants or CPAs can help such small business owners to adapt, grow and come out on the winning side of it.
Major Challenges Faced By Small Businesses Amidst The Pandemic
Here are the challenges and how an accountant East Hertfordshire can contribute to overcome them:
The Cash Flow Stress
No matter the size of the business, a sudden drop in market demand and sales is a challenging situation to handle. In the wake of COVID-19, it is just the case that has happened to a lot of small businesses. Such businesses are trying hard to maintain the cash flow even when there is an immense decline in business. An experienced and reliable accountant East Hertfordshire can help small businesses overcome this challenge by:
- analyzing their current finances
- identifying the suitable areas to make deductions and implement cuts to enable the business to operate with little or no revenue
- discuss PPP loans and other government programs for financial support
- hoarding cash which may lead to taxable income when it is the time to file taxes
The Hovering Uncertainty
The overall uncertainty that this pandemic has created is one of the biggest concerns of modern businesses. No one has any idea when the pandemic will be over making it hard to make preparations for the future. An accountant can help their clients by:
- proactive planning all around the year
- streamline workflow for enhanced consistency
- Maintaining a positive relationship and being calm to help clients feel more confident
- Implementing technologies for seamless operations and stress-free tax filing,
- Helping them make wise decisions
The Changing User Trends
Along with business operations, COVID-19 has brought major changes in user behaviour and customer behaviour. This is another key concern of businesses. Accountants can help businesses make useful investments to prepare themselves for such changes. They can help the business align their services and operations according to the needs of the customer.
All that being said, if you own or manage a small business, then all you need at this moment is the expertise and assistance of G F Gibbs & Co. They are one of the most reliable firms for a variety of accounting services and you can get a reliable accountant East Hertfordshire for all your needs. Get in touch with their expert team and help your business survive the tough times.