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6 Financial Tips for Small Businesses to Survive COVID-19 – Our Guide
In the US, small businesses are a significant portion of local communities. Places like New York City are a prime example of how small businesses impact the local scene. Without small and medium enterprises (SMEs), there wouldn’t be a healthy local economy, which is necessary for any state to thrive.
With the tremendous impact of SMEs on any country’s economy, their survival is essential. Difficulties brought by COVID-19 have given small businesses even more challenges to stay afloat. Whether these businesses are service providers or retail stores, there is a decreasing demand for numerous things that were previously popular.
The Importance of Keeping Track of Finances
Financial portfolios and bookkeeping procedures are essential to any kind of enterprise. While larger companies can hire an in-house bookkeeper to take care of documentation, SMEs don’t always have that luxury. Additionally, SMEs don’t exactly generate billions in revenue and employ hundreds or thousands of individuals. This lower-scale of operations means that it is likely more practical to hire the services of a small business bookkeeping company.
Financial documentation is important to keep in check. Here are some bookkeeping tips for small businesses to reduce the pandemic’s effects on their operations:
Keep All Paperwork Filed
Businesses must account for all money that goes in and out. This also includes tax statements and other forms of financial documents requested by the tax bureau. Nowadays, bookkeeping for small businesses has never been easier with programs and software to keep everything organized online or on a cloud server.
When migrating from manual documentation to software, data will be easily accessible by a hired bookkeeper, or even those running financial services for business
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Organization Is Key
When documenting statements, tax files, receipts, and other money-related items, it helps to organize these physically in a filing cabinet. Having a digital copy is also essential. This organization will make it easier to find specific information, so label folders and computer files accordingly.
Do Financial Audits
Audits are often overlooked when it comes to business operations. Seeing how well a business is doing financially will help create a budget that ensures better survival through COVID-19. Auditing and doing small business bookkeeping is a great way to ensure that finances are secure enough to last through the pandemic.
Use Downtimes To Do Inventory Management
Inventory checks and management can be done by taking advantage of the downtimes COVID-19 has offered. With fewer people shopping and making purchases, you’ll have more opportunities to check inventory status. You can use this technique to supplement a more efficient and reliable online inventory system when deciding to go online.
Liquidate Whenever Possible
Making sales during a pandemic is definitely going to be more challenging. People are purchasing fewer things because they prefer to save their money and spend it on the essentials. Getting rid of some of your older inventory by pricing it cheap and going on flash sales will allow a business to liquidate and make extra funds to add to budgeting. Selling old stocks and making revenue out of it also provides opportunities for newer products to be created and produced.
Hire a Small Business Accountant
Bookkeeping entails the use of plenty of numbers and calculations. If a business owner isn’t exactly well-versed in the accounting language, it is best to outsource the accounting services to a small business accountant. This accountant-for-hire can manage finances with a smaller chance of making errors.
Conclusion
Accounting for small businesses is an integral part of staying alive during this pandemic. With the world shifting economically, politically, and socially, this means evolving and staying ahead of the game to survive. Hiring a professional may be a wise investment.
FiBrick is a premium small business accounting firm in New York that offers accounting, bookkeeping, and tax planning services. Contact us to learn more about what we can do to help your business succeed.
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