Up until recently, the accountant’s role during this pandemic has been to help businesses access the business support funds which have been made available by the Government. As these schemes come to a close, accountants should be preparing for the ‘phoenix phase’ of the pandemic.
The economy will rise from the ashes. The only uncertainties are how soon this will be and what the ‘new world’ will look like after COVID-19.
Accountants will play a pivotal role in the phoenix phase specifically helping 3 types of people:
1) Business owners whose businesses didn’t survive the coronavirus
Many business owners who have had to close their businesses will not be resting on their laurels. They are entrepreneurs who will need to do something with their time so are likely to set up new businesses.
These business people will need your support to consider:
- What have they learnt from the past 6 months which will help them to plan for the future?
- What goods or services should they be selling?
- How will their internal processes need to change?
- Where will they source their products or materials from?
- What sales and marketing activities will they adopt?
- What distribution channels will be most effective?
- And so on.
2) Employees who have been made redundant
Some employees who have lost their jobs due to the fallout of the virus will be thinking this could be an opportunity to do something different and set up their own businesses. Many people during lockdown have been re-evaluating their ‘work/life balance’ with some identifying that their circumstances need to change. Being their own boss is one way of making that happen.
For these individuals, starting a new business will be daunting. They will need support with:
- Discussing, reviewing and analysing their business ideas to see if they are worth pursuing.
- Understanding the different trading structures and which one would be best for them.
- Researching suppliers and distribution channels.
- Generating business plans, budgets, cash flow forecasts etc.
- Accessing funding to kick start and develop their businesses.
- Setting up bookkeeping processes and software.
- And so on.
These individuals will need a mentor to keep them on track. Ultimately, they will appreciate the importance of having their accountant as a trusted adviser.
3) Business owners who ‘made it to the other side’
And for those businesses who were able to continue, and possibly benefit, from the virus, they will still need ongoing support from their accountant. These business people will benefit from:
- A review of the business throughout the pandemic to identify systems and procedures that worked well or could be improved or done away with.
- Having a plan in place which highlights what measures they need to take during a second wave or a future pandemic.
- Regular finance reports to have a better handle on the day to day running of their businesses, so they can make informed decisions in a timely manner.
- Knowing that their accountant has all the compliance aspects of their business covered, giving them one less thing to worry about.
- And so on.
The key for any business to survive is the ability to adapt to an ever-changing marketplace. The coronavirus has brought this to the forefront of business planning. Accountants are perfectly placed to help business owners (and prospective business owners) to create the businesses of the future.
The Phoenix phase is starting now. Accountants need to communicate with their staff, existing clients and potential new clients what they can do to help businesses during this stage. Our previous blog, “COVID Communications – are you ready for the second wave?” talks about how to communicate with different stakeholders in readiness for the second wave.
