It goes without saying that the last 12 months have been challenging for businesses – and it may be like this for quite some time. But that doesn’t mean there aren’t any positives to take from what has been a difficult year.
Many of the challenges you have faced can actually be turned into opportunities for growth. Here’s how you can use 2020 as a lesson, and prepare for future unexpected situations.
Digitise your processes
If we’ve learnt anything from 2020 it’s that, if your business can go paperless, there’s nothing stopping you from digitising your processes and ditching more manual work for good. As long as you have the tools and knowledge necessary, everything from billing and tax return preparation can now be done online.
Not only does using cloud accounting software allow you to view your finances in real time, but it’s generally a safer and more convenient way to store your documents. This is particularly important when working remotely, and especially if you plan on working from home more regularly (or permanently) in the future.
Embrace remote work
On the topic of working remotely, this year has taught us that it can work. As stay-at-home orders forced everyone across the country to spend the 9-5 in the comfort of their home, many businesses worried about productivity. It turns out that people are just as productive, if not more so. It even saved some office-related costs.
To help your team be as efficient as ever, it’s crucial to provide them with the right tools and technology to succeed. This extends to your accounting processes too. Task management, time-tracking and CRM software can enable you to easily see how much work you’re performing for clients, and that your pricing reflects that.
Keep business expenses to a minimum
One of the most significant lessons of 2020 is the importance of keeping business expenses to a minimum. When times get tough, it may seem like a smart idea to cut business expenses across all areas, though this may not always be necessary. What’s important is that you’re able to reduce non-essential expenses and determine which expenses could actually be really valuable in helping grow your business.
To figure out the difference between the two, you may want to think about developing financial forecasts for both worst- and best-case scenarios – as well as ensuring you have a clear picture of your current budget. This enables you to be agile if any other unforeseen events occur.
Seek professional advice
If you’re looking to learn from this year’s challenges and want to transform your accounting processes, it may be a good idea to seek professional advice. Investing in someone with the appropriate skills to drive your business forward during these tough times can be a great business decision.
Our expert team of accountants at Nabarro Poole is here to help. To find out more about the services we provide, including tax planning and monthly management accounts, get in touch. You can reach us on 0161 998 4276 or email firstname.lastname@example.org.