Key numbers to focus on in your business now
As a business owner, it’s always been helpful to have an understanding of accounting – but in the post-lockdown world, it’s never been more important to have a good grasp on your finances. With the business world irreparably changed by the impact of coronavirus, your business is facing a ‘new normal’. Priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable post-lockdown business model. To track, monitor and drive your financial performance in this new business world, it’s increasingly important to have a handle on your key financial reports and metrics. Getting to grips with your financial reports Whereas in the past, extra cash in the business may have been seen as a surplus that needed to be spent on something, COVID-19 has shown us that having these reserves is vitally important for the survival and long-term health of businesses. To truly be in control of this cash, it’s vital that you can dip into your accounts, financial reports and dashboards and ‘see the genuine story’ behind your financial position. So, what are the key reports to focus on? Let’s take a look: Talk to us about accounting and financial reporting for your business – we’re here to help! We’ll run you through the key reports in Xero, and can help you track performance, take action and prepare your company for surviving the new business normal.
Lessons learned in lockdown
Lockdown has been (and remains) a tough time for business. Having to shut your business at short notice, or switch to an entirely digital, remote-working model, was a stressful experience. But there are things we have taken out of lockdown. Whether it enabled us to explore new ideas or dive into some fresh thinking regarding work, life or a business venture. So, what lessons did we all learn from this enforced period of business shutdown, quarantine and remote working? Carrying over the positives from lockdown Suddenly, your office space lay empty, your employees were spread across various home locations and (crucially) your customer sales and revenue evaporated in the blink of an eye. The amazing thing about human resilience and ingenuity, however, is how quickly businesses DID evolve to cope with this situation. Teams got used to home-working, video meetings and dealing with customers in the online space. And many of us began to see the positives of this low-impact, remote-working approach. Are there things you can hang to now in the return to working life? None of us know exactly what the ‘new normal’ of business trading will look like. But if you want to be ready for a different kind of business reality, we can help. We’ll work with you to update your goals, strategy and financial model – so you’re ready for the future.
Eight C’s to help your business during Covid-19
The information overload is very real. The ramifications of Covid-19 on businesses are being felt and speculated upon every minute of each day – probably leaving you feeling like a deer caught in the headlights. Here’s eight simple words also beginning with C to help clarify your vision…. 1. Cash. It’s the oxygen for your business, do what you can now to preserve cash for the unknown future state. 2. Credit. You may need to arrange adequate credit; talk to your bank to see what your options are. 3. Colleagues. Your team are the backbone of your business and needs your leadership now more than ever. Your leadership skills will be growing day by day. Be supportive, honest and human. 4. Customers. Connect with your top customers. Call them, if for no other reason than to see how they are. Many are feeling isolated and out of control. A familiar voice and fresh perspective can make a big difference. 5. Condense. Your Marketing Plan and messaging, Business Plan and goals are likely to be temporarily irrelevant. Hit pause. Condense your efforts to focus on this crisis and adapting to make the most of the opportunities that may present themselves. 6. Change. It’s usually a choice, but right now it’s being forced by crisis. Maximise your financial resilience by imagining a new normal for your business. How can you pivot your business model to serve existing and new customers? How can you get up and running faster? 7. Communication. Whether your business is operating in some capacity or not; keep your customers and suppliers updated regularly. Social media is a big opportunity to engage your audience right now. 8. Compassion. Whether on the frontline or being unable to operate – everyone is feeling it. If we act with compassion right now, we’ll all come out of this better off. There are beautiful stories everywhere we look: from the florist donating their unsellable flowers to frontline nurses, to the musician live streaming a free concert. These gestures will not be forgotten. If you need support to help your business emerge successfully from lockdown, get in touch – we’re here to help!