News
Future Proof your Business During the Pandemic
COVID-19 has influenced all businesses, changing the very landscape of how we interact on a professional and personal level. In many cases, small businesses have borne the brunt of these changes. The Canadian Federation of Independent Business estimates that a total of $117 billion of new debt has been loaded onto small businesses as a result of the COVID-19 pandemic (CanadianBusiness.com). Despite the difficulties being faced, there are still actions which can be taken to ensure your business can weather this storm — and any future challenges!
Set up an emergency fund
A tried and true tip for personal finances, emergency funds are important for businesses too. Most businesses will experience slow periods, unexpected tax payments, economic fluctuations and other surprises. It’s important to build those changes into your business plan by saving for them, instead of focusing solely on investment and growth. Most experts suggest that a business save at least two years’ worth of expenses in an emergency fund. Keep it in a low-risk account that allows money to grow ahead of inflation. Avoid GIC’s, since your money won’t be accessible when those unexpected challenges appear.
Keep your business covered
There are multiple types of business insurance that may prove critical. Consider your auto insurance needs as well as commercial general liability insurance and business interruption insurance. Having enough of the right type of coverage might mean the difference between weathering a storm and watching your business fold.
Find your efficiencies
When times are tough staying on top of your financials is incredibly important and an excel sheet is not going to cut it. Investing in a software or outsourcing to a professional bookkeeper, may cost more up front, but frees up time and mental energy to run your business more efficiently.
Check out our blog and resources for more information on operating a business during the pandemic.
If your business is struggling or if you are thriving and would like to ensure that success continues, get in touch with our talented business advisors and chartered professional accountants.
Source: CanadianBusiness.com
All Posts