6 Covid Lockdown Tips For SMEs
Build Time And Options or Your Covid Lockdown Business With These 6 Tips
Today, the NSW Government extended the greater Sydney Covid lockdown by another 4 weeks. This is understandably a difficult and stressful time for many small and medium businesses. Here’s 6 Tips For managing during lockdown for your SME allowing your business not only to survive, but also come through this period stronger.
Make sure your books are up to date
This is critical in knowing where your business stands, and as importantly, will provide the information that Services NSW need to assess your claims for the Covid disaster payment or Covid Job Saver support. Speak with your accountant or other trusted advisor and get up to date. Need to find a new advisor ? Check our preferred advisors here
Know your business numbers and how they are changing
Following on from this, make the most of the data available in your Xero, QuickBooks, or MYOB accounting platform. Linking these to platforms such as Jazoodle can really unlock key insights in your business. Insights such as creditor and debtor payment periods, profitability, cash runway, or even your average monthly expenses burn rate
Don’t Bury Your Head In The Sand
The old saying is “a problem shared is a problem halved”. We encourage you to work very closely with your accountant or business advisor in order to prepare a personalised plan for your business survival and recovery
Profit Does Not Equal Cash
Your business may continue to be profitable, but don’t fall into a trap where you run out of cash earning those great profits. During these times, cash is most definitely king. Ensure that you have strong policies in place for supplier payments and client invoice collection. The general rule is your receivables period should be shorter than your payables period. Jazoodle shows you this instantly You should also, armed with your up to date financials ensure that you are aware of what cash financing option you may have at your disposal. Your liquidity levels should be assessed and discussed with your lender or finance institution.
Build Resilience and Agility
Keep abreast of your per employee numbers, such as profit per employee, expenses per employee or even revenue per employee. These numbers can give you great clues to the timing of any temporary stand downs you may have to make. Consult your numbers regularly and be prepared to act on them
Make time for you!
Times such as these place great demands on business owners and directors. Don’t forget time to reflect, time for your physical mental health, and get plenty of sleep if you can.
You Can Do this
Our key message, is actively seek out your numbers. Doing this will create time for you and your business to consult your advisors, apply assistance, and give you options and reaction time in your business. Jazoodle s free for all individual SMEs and Not For Profits you can share your board free your accountant or advisor. Create your dashboard here